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Essar profits up

Essar's profits are up for the second consecutive quarter. In the three-month period ending Sept. 30, Essar Steel Algoma reported a net income of $73.7 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $86.
Northern Ontario Business Staff

Essar's profits are up for the second consecutive quarter.

In the three-month period ending Sept. 30, Essar Steel Algoma reported a net income of $73.7 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $86.9 million. Shipments for the period were 673,000 tons, up nine per cent from the same period last year.

“I would like to thank the entire Essar Steel Algoma team for their continued efforts in cost reduction and operational reliability which, when combined with improved market conditions, delivered solid financial performance in the quarter,” CEO Jim Hrusovsky said in a news release.

Higher selling prices, higher shipment volumes and lower costs are cited for the positive numbers.

Steel revenue was $555.3 million for the period, up 22.2 per cent from the same period last year, as a result of improved pricing and volume. Cost per ton of steel products sold was reduced 3.1 per cent compared to the period the previous year.