Drop in steel prices leads to $28 million loss for Essar Steel Algoma

Wednesday, 14 August 2013 01:20:09 (GMT+3)   |   San Diego

Sault Ste. Marie, Ontario-based Essar Steel Algoma, a producer of flat rolled and plate steel products, reported Tuesday an EBITDA loss of $8.4 million for the three month period ending June 30, 2013, compared to EBITDA of $64.2 million for the same period a year ago, when steel prices were significantly higher.  For the three month period ending June 30, 2013, the company reported a net loss of $28.7 million. Sales for the quarter were $464 million with shipments of 672,000 tons, up 4 percent and 5 percent respectively from Q4 of fiscal 2013.

Essar Steel Algoma Chief Executive Officer Kalyan Ghosh commented on the quarter's results, "Shipments of 672,000 tons for the quarter represent the highest volume shipped in the last eight quarters.  Despite this increase in volume and reduced input costs, these improvements were not sufficient to return us to profitability due to lower steel prices. Fortunately, prices have begun to rebound since reaching a two-year low in June, and we expect to see an improvement in operating profitability next quarter."

 


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