Algoma Steel Inc. Announces Fourth Quarter ReMuch better than the $0.75 estimate.
SAULT STE. MARIE, ON, Feb. 8 /CNW/ - Algoma Steel Inc. today released its
fourth quarter results for 2005.
Fourth Quarter Highlights:
- EBITDA of $77.6 million.
- Net income of $55.0 million or $1.38 per share.
- Pension prepayment reduces tax liability.
- Cash and short-term investments of $434.8 million.
- 11% Notes redeemed in January 2006.
Algoma Steel Inc. reported net income of $55.0 million for the three months ended December 31, 2005 or $1.38 per common share on a diluted basis.
This compares to net income of $30.8 million in the third quarter and
$122.2 million in the fourth quarter of 2004. EBITDA for the fourth quarter was $77.6 million compared to $62.8 million in the third quarter and $191.2 million in the fourth quarter of 2004. The increase from the third quarter was due mainly to higher steel prices, while the decline from the fourth quarter of 2004 was due mainly to lower steel prices and higher raw material and energy costs. In the fourth quarter, cash and short-term investments decreased by $18.3 million primarily due to an additional
$50.0 million of pension funding in the quarter.
Denis Turcotte, President and Chief Executive Officer, commented, "Our employees have remained focused on the core business objectives which contributed to a strong quarter, including a significant production record on the Direct Strip Production Complex. Our cash and securities balance decreased by a relatively small amount despite the prepayment of a significant portion
of our 2006 pension funding obligation and several other working capital payments. The Company is now debt-free following the redemption of the 11% Notes on January 3, 2006. We continue to actively explore a number of opportunities, including possible mergers, a sale of the Company, and other business combinations."