Business
Stelco reports results for third quarter 2005
Stelco reports results for third quarter 2005.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Nov. 10 /CNW/ - Stelco Inc. (TSX:STE) today reported a net\nloss of $42 million ($0.41 per common share) for the quarter ended\nSeptember 30, 2005. This compares to net earnings of $58 million ($0.57 per\ncommon share) for the third quarter of 2004 and $40 million ($.39 per share)\nfor the previous quarter. Nine-month net earnings were $47 million ($0.46 per\ncommon share) compared to net earnings of $63 million ($0.62 per common share)\nfor the same period in 2004.\nThe results, when compared to third quarter 2004, reflect lower spot\nmarket selling prices, decreased shipments, reduced production levels, higher\nreorganization costs and higher energy costs, partly offset by higher income\ntax recoveries and lower scrap and coke costs. Also included in the third\nquarter 2005 is a loss resulting from the sale of substantially all of the\nassets of Stelpipe Ltd., more than offset by income tax recoveries recognized,\nrelated to Stelpipe net operating loss carry forwards.\nNet sales revenue in the third quarter was $725 million compared to\n$897 million for the same period last year. During the first nine months of\n2005, sales revenue was $2.462 billion compared to $2.446 billion recorded\nduring the first nine months of 2004.\nThe Company produced 1,107,000 net tons of semi-finished steel in the\nthird quarter of 2005 compared to 1,385,000 net tons produced in the third\nquarter of 2004. Production for the first nine months of this year stood at\n3,660,000 net tons compared to the 4,078,000 net tons produced during the same\nperiod in 2004.\nShipments in the third quarter of 2005 totalled 1,067,000 net tons\ncompared to 1,143,000 net tons shipped during the third quarter of last year.\nShipments during the first nine months of this year totalled 3,306,000 net\ntons compared to 3,564,000 net tons shipped during the first nine months of\n2004.\nAt September 30, 2005, the Company's consolidated net liquidity position\nwas $307 million, consisting of $36 million of cash, cash equivalents and\nrestricted cash as well as $469 million in available lines of credit, less\n$198 million of drawings on lines of credit. At June 30, 2005, net liquidity\nwas $407 million, consisting of $26 million of cash, cash equivalents and\nrestricted cash as well as $472 million in available lines of credit, less\n$91 million of dr...