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Weak steel markets impacts Essar

Essar Algoma Steel is reporting a $398.9-million loss for its 2010 fiscal year, ending March 31. The Sault Ste. Marie steel maker attributes the loss to lower sales volumes and lower prices for steel.
Northern Ontario Business Staff

Essar Algoma Steel is reporting a $398.9-million loss for its 2010 fiscal year, ending March 31.

The Sault Ste. Marie steel maker attributes the loss to lower sales volumes and lower prices for steel.

In a June 16 release, the company said steel shipments were down 14 per cent from the previous year at 2,223,966 million tons.

The privately held company reports EBITDA earnings of $49.5 million for the fiscal year, as compared to $453.4 million for 2009. EBITDA is a meaningful indicator of the company's profitability.

Essar CEO Armand Plastino said more aggressive cost controls are needed in these cyclical steel markets and "volatile input costs."