Business
Algoma Central Corporation - Operating Results For the Three and Twelve Months Ended December 31, 2008 and 2007
ALC-T TORONTO, Feb. 18 /CNW/ - ALGOMA CENTRAL CORPORATION
About this update from Algoma Central Corporation
[{"type":"text","content":"\n\n\n\nALC-T\n\n\nTORONTO, Feb. 18 /CNW/ -\n\n\n ALGOMA CENTRAL CORPORATION\n\n Operating Results\n\n For the Three and Twelve Months Ended December 31, 2008 and 2007\n\n (In thousand of dollars except per share data)\n\n\n Three Months Twelve Months\n Ended Ended\n December 31 December 31\n 2008 2007 2008 2007\n\nRevenue $ 196,402 $ 185,134 $ 688,914 $ 580,546\n\nNet earnings $ 16,832 $ 26,077 $ 41,280 $ 52,443\n\nEarnings per share $ 4.33 $ 6.70 $ 10.61 $ 13.48\n\nDividends paid per common\n share $ 0.45 $ 0.35 $ 1.70 $ 1.40\n\n\n\nThe Corporation is reporting net earnings for the three months ended\nDecember 31, 2008 of $16,832 compared to $26,077 for the same period in 2007.\nThis decrease in net earnings of $9,246 was due primarily to the following:\n\n\n - Decreases in the earnings of Ocean Shipping segment due to reduced\n results from the self-unloader commercial arrangement.\n\n - Decrease in earnings of the Product Tanker segment due primarily to\n lower than expected results for the Algoma Hansa.\n\n - Increase in net foreign exchange losses resulting primarily from the\n translation to Canadian dollars of U.S. dollar denominated debt due\n to the weakening of the Canadian dollar.\n\n - A reduction of income tax expense in 2007 of $5,570 due to lower\n future corporate income tax rates.\n\n\nFor the twelve months ended December 31, 2008, the Corporation is\nreporting net earnings of $41,280 compared to net earnings of $52,443 for\n2007.\n\n\nThe decrease in net earnings was primarily due to foreign exchange losses\nincurred in 2008 compared to foreign exchange gains recorded in 2007 and a tax\nbenefit recorded in 2007 for the reduction in future income tax rates.\nEarnings from operations, net of income tax and earnings of non-controlling\ninterest, increased by 4% from 2007 from 2008 due primarily to the following:\n\n\n - The Domestic Dry-Bulk segment earnings improved as higher freight\n rates and additional operating days for the bulk carriers more than\n offset higher operating costs primarily due to lay-up spending.\n Higher fuel costs were recovered through fuel surcharges.\n\n - The improved earnings for the Ocean Shipping segment were a result\n of improved earnings from the self-unloader commercial arrangement,\n strong earnings from positioning cargos for vessels having scheduled\n regulatory dry-dockings ...