Dofasco announces strong results for Q2

Dofasco announces strong results for Q2

North American leading steelmaker Dofasco Inc. announced strong results for the second quarter of 2003 under difficult conditions which are affecting the North American steel industry. The company posted its consolidated net income as $38.8 million for the three months ended June 30, 2003 where $69.7 million recorded in corresponding period last year. Company authorities stated that the company satisfied with this result under difficult conditions, including significant strengthening of the Canadian dollar against the US dollar, weak spot prices, increasing imports and higher energy costs. Company's steel shipments decreased to 1'211'000 tons in the second quarter of 2003 from 1'295'000 tons in 2002. However, the sales showed a similar result when compared to the same last year and reached to $923 million. Dofasco's Hamilton operations posted its pre-tax income as $53.1 million for the aforementioned period compared to $93.7 million recorded in the same period last year. Hamilton's shipments decreased to 1'019'000 from 1'114'000. Furthermore, Gallatin Steel shipped 385'000 tons in the second quarter, up from 362'000 tons shipped in the second 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 $4.4 million in the second quarter of 2003 compared to $4.2 million loss in the second quarter of 2002. Also, QCM increased its iron ore shipments to 4 million tons from 3.1 million tons. Dofasco is looking forward to increase revenues, reduce costs and enhance margins despite an uncertain market conditions.