Essar Steel Algoma is reporting EBITDA earnings of $8.1 million for the three-month period ending March 31, 2013.
EBITDA, excluding exceptional items, for fiscal year 2013 was $57.3 million as compared to $321 million for fiscal 2012. The decline from fiscal year 2012 is attributed to lower shipments, depressed selling prices and higher-than-market iron ore costs. EBITDA is a meaningful indicator of the company’s profitability.
For the three-month period ending March 31, 2013 the company reported a net loss of $92.7 million. Sales for the quarter were $447.7 million with shipments of 638,652
tons, down 1.5 per cent from the corresponding quarter in the previous year.
“Despite continued cost-reduction measures, operating efficiencies and an improving product market mix, lackluster market conditions and contracted raw material input costs combined to negatively impact our F2013 performance,” Essar CEO Kalyan Ghosh said in a news release. “Recently announced improvements to our iron ore contract and credit agreements position the company more favourably for F2014 and beyond.”
