Business
Stelco reports results for second quarter 2006
Stelco reports results for second quarter 2006.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Aug. 10 /CNW/ - Stelco Inc. (TSX:STE) today reported EBITDA\nof $19 million and a net loss of $31 million or $1.14 per share for the second\nquarter ended June 30, 2006. A number of unusual items during the quarter\nnegatively impacted EBITDA by $49 million and net income by $54 million. These\nitems relate primarily to adjustments resulting from the application of fresh\nstart accounting, and workforce cost reduction initiatives, partially offset\nby a net favourable future income tax adjustment due to the enactment of lower\nfederal corporate income tax rates.\nAs a result of the reorganization and the continuing revaluation of\nStelco's assets and liabilities under \"fresh start\" reporting, consolidated\nfinancial and other information reported in the second quarter of 2006 may not\nbe comparable with consolidated financial and other information reported in\nprior periods. The application of \"fresh start accounting\", on March 31, 2006,\nwill continue to impact future results due to amortization changes as a result\nof revaluing of property, plant and equipment and cost of sales increases in\nthe near term as the remainder of the revaluation of inventories from the\nlower of cost and net realizable value to fair value. The revaluation has not\nbeen finalized. Accordingly, only selective financial information on sales,\nproduction and shipments is commented on by way of comparison with prior\nperiods.\nNet sales revenue for the quarter ended June 30, 2006 was $698 million\ncompared to $658 million for the same period in 2005. Increased revenues\nduring the quarter were mainly due to a 15% increase in steel shipments.\nPartially offsetting this was an 8% decrease in average revenue per ton\nresulting from lower spot and contract pricing, the negative impact of the\nhigher Canadian dollar, and a shift in mix towards lower valued added\nproducts. Production during the second quarter of 2006 increased to 1,108,000\nsemi-finished tons with shipments increasing to 971,000 net tons as compared\nto 1,054,000 semi-finished tons produced and 840,000 net tons shipped in the\nsecond quarter of 2005.\nNet sales revenue for the quarter ended June 30, 2006 was $698 million\ncompared to $674 million for the quarter ending March 31, 2006. While steel\nshipments remained relatively constant, there was a 4% increase in ...