Dofasco achieves strong results despite difficult conditions

Dofasco achieves strong results despite difficult conditions

North American steel producer Dofasco Inc. announced strong results for the third quarter of 2003 under difficult conditions which are affecting the North American steel industry. Dofasco reported its consolidated net income as $29.9 million for the three months ended September 30, 2003. In the previous quarter, Dofasco's net income was $38.8 million. Dofasco officials expressed that the company was the most profitable steel producer in North America for the first two quarters of the year. Furthermore, Dofasco satisfied with third quarter results despite high raw material costs and a decrease in revenue. Company's consolidated sales decreased to $858 million in the third quarter of 2003 from $931 million recorded in the same period last year. In addition, Dofasco's steel shipments dropped to 1'174'000 tons in the third quarter from 1'209'000 tons in the third quarter of 2002. Dofasco's Hamilton operations posted its pre-tax income as $39.5 million for the aforementioned period compared to $108.8 million recorded in the same period last year. Hamilton's shipments decreased to 1'001'000 from 1'025'000. Gallatin Steel shipped 345'000 tons in the third quarter compared to 368'000 tons shipped in the third quarter of 2002. Quebec Cartier Mining Company (QCM) which is Dofasco's joint venture iron ore mine in Quebec, reported its pre-tax profit as $10.8 million in the third quarter of 2003 against $4.4 million loss in the third quarter of 2002. Also, QCM increased its iron ore shipments to 3.9 million tons from 3.3 million tons.