Business
Stelco reports results for the fourth quarter and year 2005
Stelco reports results for the fourth quarter and year 2005.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, March 24 /CNW/ - Stelco Inc. today released its 2005\nAudited Consolidated Financial Statements together with Management's\nDiscussion and Analysis, which outlines the Corporation's financial results\nand condition.\nThe results reported today include certain discontinued operations of the\nCorporation. During 2005 all of the non-core businesses in the Mini-mill and\nManufactured Products segments were sold or committed to be sold in whole or\nin part. As a result, these business units were characterized as discontinued\noperations. Previously reported financial results have been restated to\nisolate their income statement and cash flow activities from the continuing\noperations of the Corporation. In addition, their assets and liabilities have\nbeen presented as held for sale.\nFor the year ended December 31, 2005, Stelco reported a net loss of\n$73 million ($0.71 per common share), including a $64 million net loss from\ndiscontinued operations. This compares with restated net earnings of\n$64 million ($0.63 per common share) for the year ended December 31, 2004,\nwhich included net earnings of $30 million ($0.30 per common share) from\ndiscontinued operations.\nFor the fourth quarter of 2005, Stelco reported a net loss of\n$120 million ($1.17 per common share), including a $53 million net loss from\ndiscontinued operations. During this period the continuing operations recorded\nproduction of 982,000 semi-finished tons and shipments of 888,000 tons. For\nthe fourth quarter of 2004 Stelco had restated net earnings of $1 million\n($0.01 per common share), which included a net loss of $20 million ($0.20 per\ncommon share) from discontinued operations, on production of 1,115,000 \nsemi-finished tons and shipments of 881,000 tons from continuing operations.\nThe results issued today were attributable in large measure to factors\nthat reduced revenue and increased costs. A longer than anticipated shutdown\nat the Lake Erie facility was incurred during the fourth quarter as the\nCompany initiated the previously announced upgrading of the hot strip mill.\nThe shutdown had a negative impact on the facility's overall production, as\nwell as on the volume and mix of products shipped. This led to reduced revenue\nfrom sales. Other factors affecting revenue included softer demand, resulting\nin lower prices, and a hi...