NEW YORK Essar Steel
Algoma Inc. posted its fourth consecutive quarterly loss on the
back of a "lackluster" market and lower average sales
The Sault Ste. Marie,
Ontario-based flat-rolled steel producer posted a net loss of
Canadian $25.1 million ($25.07 million) in its fiscal third
quarter ended Dec. 31 compared with a C$50.8-million loss in
the same period a year earlier on sales that fell 6.1 percent
to C$475.1 million ($474.56 million).
"Despite lackluster steel
markets, our commitment to safety and the continued realization
of our cost-reduction strategies combined to generate improved
operating results for the quarter," chief executive officer
Kalyan Ghosh said in a statement released with the earnings
report Feb. 13.
Steel sheet shipments during the
fiscal third quarter totaled 580,000 tons, up 21.6 percent from
477,000 tons in the fiscal second quarter, while steel plate
shipments rose 7 percent to 76,000 tons from 71,000 tons. But
sales prices fell 5.5 percent for steel sheet and 2.6 percent
for plate in the same comparison, the company said.
Sales of steel sheet and strip
products totaled C$349.1 million ($348.7 million) during the
fiscal third quarter, up 2.4 percent from C$340.9 million in
the same period a year earlier, while sales of plate products
fell 36.2 percent to C$74.1 million ($74.02 million) from
C$116.1 million in the same comparison.
macro(economic) indicators, order book and market conditions
remain lackluster thus far" in the current quarter, the company
said, adding that shipments in its fiscal fourth quarter are
expected to return to normal levels.