Business
Stelco reports results for third quarter 2006
Stelco reports results for third quarter 2006.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Nov. 9 /CNW/ - Stelco Inc. (TSX:STE) today reported EBITDA\nof $64 million and earnings before tax of $13 million for the third quarter\nended September 30, 2006, representing an improvement in operating performance\nover the second quarter of 2006. Deducted from EBITDA and earnings before tax\nare unusual items of $11 million and $17 million respectively. Of these\nunusual items $11 million arose from a \"fresh start\" reporting inventory\nrevaluation and $6 million related to employee voluntary retirement incentive\ncosts. After deducting a tax provision of $38 million, which was largely\nattributable to non-cash adjustments from \"fresh start\" reporting, the net\nloss for the quarter was $25 million.\nNet sales revenue for the quarter ended September 30, 2006 was $660\nmillion compared to $698 million for the quarter ending June 30, 2006. The\ndecrease in net sales was due to a 5% decline in shipments resulting primarily\nfrom reduced demand from the automotive sector and steel service centres.\nAverage revenue per ton was unchanged as higher spot prices offset a lower\npriced product mix. Costs for the quarter ended September 30, 2006 were\n$596 million compared to $679 million for the quarter ending June 30, 2006.\nCosts in the third quarter were lower by 12% primarily due to the 5% decline\nin shipments and a 7% decrease in the average cost per ton. The decline in the\naverage cost per ton is largely attributed to the flow through of the balance\nof the \"fresh start\" inventory adjustment of $11 million for the third\nquarter, which was significantly less than the amount recorded in the second\nquarter of $49 million.\nAs a result of the reorganization and the revaluation of Stelco's assets\nand liabilities under \"fresh start\" reporting, consolidated financial and\nother information reported in the third quarter of 2006 may not be comparable\nwith consolidated financial and other information reported in prior periods.\nAccordingly, only selective financial information on sales and shipments are\ncommented on by way of comparison with periods prior to the reorganization on\nMarch 31, 2006.\nNet sales revenue for the quarter ended September 30, 2006 was $660\nmillion compared to $559 million for the same period in 2005. The increase in\nrevenue was due to a 13% increase in shipments and a 4% incre...