Stelco reports third quarter results

Stelco reports third quarter results

Legally insolvent Canadian steelmaker Stelco Inc. reported a third quarter 2005 income loss of CA$42 million (Canadian) due to lower spot market selling prices, decreased shipments, reduced production levels, higher reorganization costs, and higher energy costs, partly offset by higher income tax recoveries and lower scrap and coke costs. Net sales in the third quarter was CA$725 million compared to CA$897 million for the same period last year. During the first nine months of 2005, sales revenue was CA$2.462 billion compared to CA$2.446 billion recorded during the first nine months of 2004. Net income was reported as a loss of CA$42 million, or CA$0.41 per share, for the third quarter compared to net earnings of CA$58 million, CA$0.57 per share, for the third quarter of 2004 and CA$40 million, CA$0.39 per share, for the previous quarter. Year-to-date net earnings were CA$47 million, or CA$0.46 per share, compared to net earnings of CA$63 million, or CA$0.62 per share, for the same period in 2004. Courtney Pratt, Stelco president and CEO, said, "The third quarter results demonstrate the continuing competitive challenge we face and the vital importance of securing a consensual restructuring which will enable us to move forward with our strategic capital program. As we have said throughout this process, this capital program is essential to making Stelco competitive through all stages of the market cycle and ensuring a positive long-term future." Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills and manufactured products businesses.