October 11, 2008

ASI reports modest profit, expects 15-quarter run to end

It is reported that Algoma Steel Inc has posted its 15th consecutive profitable quarter with modest net income of USD 3.9 million for the period April to June 2007.

Its April to June 2007 net income, affected by USD 23.6 million in transaction related expenses, was the leanest since the quarterly run on profitability began more than three years ago. The company has generated an USD 830 million profit since emerging from nine months of court supervised restructuring in January 2002, including USD 27 million in the first six months of 2007 down nearly USD 85 million from a year ago.

It includes 620,000 tonnes of shipments at USD 715 per tonnes shipped down USD 38 per tonnes from April to June 2006. Shipment breakdown included 480,000 tons of sheet and strip, valued at USD 298 million and 140,000 tonnes of plate valued at USD 145 million an average price of USD 1,035 per tonnes. More than one third of all sales, an estimated USD 177 million was to customers in the United States.

However, the quarterly profitability run, which began in fourth quarter of 2003 should end during July to September 2007 quarter, as Algoma’s lone operational BF No 7 blast furnace is undergoing a scheduled 47 day partial interior rebuild beginning July 6th 2007. As per report, due to non availability of hot metal, Direct Strip Production Complex and the slab caster have also been idled during the rebuild.

Mr Brenda Stenta manager of corporate communications of Algoma Steel Inc said that the furnace with capacity for 7,000 tonnes of molten iron production daily is expected to be in full production by the end of the week.