Business
Dofasco posts $28.4 million fourth quarter net income
Dofasco posts $28.4 million fourth quarter net income.
About this update from Playgon Games, Inc.
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Feb. 3 /CNW/ - Dofasco Inc. today reported its earnings for\nthe year and quarter ended December 31, 2005. Dofasco's 2005 net income was\n$171.0 million or $2.21 per share, compared to $376.9 million or $4.92 per\nshare in 2004. For the three months ended December 31, 2005, net income was\n$28.4 million or $0.37 per share. This compares to net income of $96.8 million\nor $1.26 per share in the fourth quarter of 2004.\nThe consolidated net income for the fourth quarter reflected good results\nat the Corporation's Mining Operations and Gallatin Steel segments offset by a\nloss at Dofasco's Steel Operations business segment.\nThe financial results for the Steel Operations segment, which includes\nDofasco's Hamilton operations, were negatively impacted in the fourth quarter\nby continued high input costs and various production issues. In addition, a\nnumber of non-operating items had a net unfavourable impact on Dofasco's\nfourth quarter net income of approximately $9 million or 11 cents per share.\nThese results also reflect the recent volatility experienced in the North\nAmerican pricing environment. In 2004, robust global flat rolled steel demand\nled to a rapid escalation of U.S. spot market selling prices over the first\nthree quarters of the year, reaching a record level of US $740 per ton as\npublished by CRU International Inc. in September 2004. Increased levels of\nimports into North America in the second half of 2004 resulted in higher\ninventories throughout the supply chain which led to a decline in industry-\nreported prices of approximately US $100 per ton during the fourth quarter. In\n2005, the high inventory levels, combined with softening end-user demand,\nresulted in a further decline in published hot band spot prices of more than\nUS $200, reaching a low of US $425 per ton in August before recovering to US\n$550 per ton for the fourth quarter, as reported by CRU.\nCommenting on the year's results, Dofasco's President and CEO Don Pether\nsaid, \"We are pleased by our two recent acquisitions, Quebec Cartier Mining\nCompany and the Copperweld automotive and mechanical tubing businesses, and by\ntheir performance to date. In addition, Gallatin continued its excellent\noperational performance with record annual shipments. Gallatin's earnings\nperformance was only surpassed by record results in ...