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Essar Steel reports $33-million profit

Essar Steel Algoma Inc. reported a net income of $33.2 million for the quarter ended June 30 for the fiscal year in 2012. Shipments were 641,017 tons, up 4.6 per cent from the first quarter in the previous year. The company reported EBITDA of $108.
Northern Ontario Business Staff

Essar Steel Algoma Inc. reported a net income of $33.2 million for the quarter ended June 30 for the fiscal year in 2012. Shipments were 641,017 tons, up 4.6 per cent from the first quarter in the previous year.

The company reported EBITDA of $108.9 million for the first quarter compared to EBITDA earnings of $65.9 million for the first quarter the prior year. EBITDA is a meaningful indicator of the Company's profitability. Improved financial results for the quarter were the result of higher selling prices, higher shipments and cost reduction initiatives undertaken by the company.

“Despite the realization of increased raw material costs, we continue to see the benefit of our cost reduction initiatives, which, when combined with improved market conditions, delivered a solid first quarter,” CEO Jim Hrusovsky said in a news release.