Business
Algoma Central Corporation - Operating Results For the Three and Nine Months Ended September 30, 2009 and 2008
Algoma Central Corporation - Operating Results For the Three and Nine Months Ended September 30, ...
About this update from Algoma Central Corporation
[{"type":"text","content":"\n\n\n\nNov. 4, 2009 (Canada NewsWire Group) -- TORONTO, Nov. 4 /CNW/ --(In thousand of dollars except per share data)Three Months Ended Nine Months EndedSeptember 30 September 302009 2008 2009 2008Revenue $ 151,454 $ 226,836 $ 353,088 $ 492,512Net earnings $ 20,620 $ 18,523 $ 15,676 $ 24,448Earnings per share $ 5.30 $ 4.76 $ 4.03 $ 6.28Dividends paid per common share $ 0.45 $ 0.45 $ 1.35 $ 1.25Third Quarter ResultsThe Corporation is reporting net earnings for the three months ended September 30, 2009 of $20,620 compared to $18,523 for the same period in 2008.The increase in net earnings for the quarter ended September 30, 2009 of $2,097 when compared to the same prior year period was due primarily to an increase in net foreign exchange gains on the translation of foreign denominated assets and liabilities. This increase was partially offset by lower operating earnings net of income tax in all the business units and an increase in financing costs due to higher borrowings and rates.The net foreign exchange gains were higher in the third quarter of 2009 by $7,619 when compared to the third quarter of 2008 due mainly to the translation of foreign-denominated net liabilities from the strengthening of the Canadian dollar against the U.S. dollar. In the third quarter of 2008 the Corporation incurred net foreign exchange losses due mainly to the translation to Canadian dollars of Euro denominated short term cash deposits.The Domestic Dry-Bulk segment's operating earnings net of income tax decreased by $513. Reduced operating results due to significantly fewer operating days as a result of the current economic conditions was partially offset by a net gain of $2,086 on the insurance proceeds due to the loss of the Algoport, The Algoport is a jointly owned vessel with an unrelated party in the Seaway Marine Transport partnership. The Algoport broke up in heavy seas in the Pacific Ocean on September 6, 2009 while under tow enroute to the Chengxi Shipyard in China. There were no injuries, loss of life or environmental impact.The vessel's aft end was to be refurbished and fitted to a new forebody currently under construction at the shipyard. The insurance proceeds will be used to source an alternate aft end to attach to the forebody under construction.The Product Tankers segment operating earnings net of income tax decreased by $736 due prim...