NEW YORK Essar
Steel Algoma Inc. posted its fifth consecutive quarterly loss
on the back of lackluster market conditions and declining
The Sault Ste. Marie,
Ontario-based flat-rolled steelmakers net loss for its
fiscal fourth quarter ended March 31 soared to Canadian $92.7
million ($89.3 million) from C$18 million in the same period
last year on sales that fell 14.6 percent to C$447.7 million
($431.26 million) from C$524 million.
For the full year, the
company posted a net loss of C$203.3 million ($195.83 million)
in contrast to net income of C$38.1 million the previous year
as sales declined 13.6 percent to C$1.87 billion ($1.8 billion)
from C$2.16 billion.
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 fiscal 2013 performance," chief executive officer
Kalyan Ghosh said in a statement.
improvements to our iron ore contract and credit agreements
position the company more favorably for fiscal 2014 and
beyond," he added.
Steel product sales in
the fiscal fourth quarter averaged $634 per net ton, down 15.5
percent from $750 a year earlier, which the company attributed
to lower steel selling prices worldwide, particularly in North
Steel sheet shipments
totaled 555,000 net tons in the fiscal fourth quarter, down 4.3
percent from 580,000 tons in the fiscal third quarter, while
steel plate shipments rose 9.2 percent to 83,000 tons from
76,000 tons in the same comparison. "Shipment volumes decreased
by 18,000 tons from the (fiscal) third quarter due to the
impact of severe winter weather," the company said.
Looking ahead, Essar
Steel Algoma said it faces a number of challenges, including
low mill utilization rates and soft demand.
macro indicators, order book and market conditions remain
lackluster thus far in the current quarter," the company said.
"For the first quarter of fiscal 2014, we expect higher sales
volumes, lower costs and lower selling prices compared to the
last quarter. (However), the company has seen some recent
improvement on pricing in the market and has also increased
(hot-rolled coil) prices by $50 per ton."