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Essar Steel Algoma Reports Results for Fiscal Year 2010
Jun. 17, 2010 Essar Steel Algoma reported a net loss of $68.4 million on sales of $464.8 million for the fourth quarter, and a net loss of $398.9 million on sales of $1,409.4 million for the fiscal year ended March 31, 2010.
The company said the loss for the year was attributable to lower sales volumes and lower prices in steel markets. Sales, at $1,409.4 million, were down $1,138.1 million compared to the prior fiscal year.
Shipments for fiscal year 2010 were 2,223,966 tons, down 14% from the prior year. Shipments for the quarter were 697,639 tons.
The company reported EBITDA earnings, excluding exceptional items, of $49.5 million for the fiscal year, which compares to $453.4 million of EBITDA for fiscal year 2009. Fourth quarter EBITDA earnings were $24.8 million. The company noted that weak steel markets in fiscal 2010 had resulted in poor financial performance for the year.
"More aggressive cost-control measures are required in light of the cyclicality of steel markets in combination with volatile input costs,” said Chief Executive Officer Armando Plastino, commenting on the quarter. “We are confident that our employees and stakeholders are aware of this challenge and will continue working together to ensure a viable and sustainable business going forward."
A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ont. As a fully integrated steel producer, the company derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate.