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Essar Steel reports loss

For the fiscal year that ended March 31, Essar Steel Algoma in Sault Ste. Marie reported a net loss of $285.9 million. The loss was primarily attributable to higher raw material pricing, the most significant being iron ore pellets.
Northern Ontario Business Staff

For the fiscal year that ended March 31, Essar Steel Algoma in Sault Ste. Marie reported a net loss of $285.9 million.

The loss was primarily attributable to higher raw material pricing, the most significant being iron ore pellets. This was partially offset by higher sales volumes and improved steel pricing. The net loss for the fourth quarter was $91.1 million, due in part to an unplanned 23 day outage of No. 7 blast furnace.

Shipments for the year were 2,387,000 tons, up 7.3 per cent from the prior year. Shipments for the fourth quarter were 527,000 tons, down 24.5 per cent from the same period in the previous year. Sales for fiscal 2011 were $1,768.3 million up 25.5 per cent compared to the prior year. Sales for the fourth quarter were $386.1 million.

The Company reported an EBITDA loss, excluding exceptional items, of $32.4 million for the year compared to EBITDA earnings of $49.6 million for 2010. In the fourth quarter, the EBITDA earnings were $9.9 million.