Business
Stelco reports second quarter results
Stelco reports second quarter results.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\nHAMILTON, ON, July 25 /CNW/ - Stelco Inc. ("Stelco" or the "Corporation")\n(TSX:STE) today reported EBITDA(x) of $53 million for the second quarter ended\nJune 30, 2007, a substantial improvement over the $13 million EBITDA(x) in the\nfirst quarter of 2007. Net loss before income tax for the second quarter was\n$19 million, compared to a net loss before income tax of $35 million for the\nfirst quarter. The net loss before income tax for the second quarter included\nasset impairment charges, workforce reduction costs, a write-off of financing\nfees and foreign exchange gains. Excluding the impact of these items, the\nCorporation would have achieved net income before income tax of $5 million for\nthe second quarter.\n\n\n Second Quarter Highlights\n\n - Hamilton operations achieved record productivity levels in the second\n quarter assisted by the shutdown of older facilities and a workforce\n reduction of approximately 400 employees.\n\n - The Lake Erie Steel hot strip mill set a quarterly production record\n of 796,000 tons.\n\n - Shipments increased by 18% to 1,089,000 tons from 922,000 in the\n first quarter of 2007, and revenue increased to $717 million from\n $609 million in the first quarter 2007.\n\n - As previously disclosed, the Corporation entered into an agreement to\n sell its interest in the Wabush mine.\n\n\nOperations\n\n\nSecond quarter costs decreased to $610 per ton, an improvement of $36 per\nton over the first quarter. The quarter-over-quarter cost improvement results\nfrom a combination of the continuing impact of cost reduction initiatives\nimplemented by management along with input cost reductions. During the quarter\nhot rolling was consolidated at the Corporation's newly expanded and\nmodernized Lake Erie Steel mill, which allowed for the closure of the 56"\nmill, the No.2 pickle line and other related facilities at the Hamilton Steel\noperations. This initiative has reduced the Hamilton workforce by\napproximately 400 employees, will reduce production costs and increase\nrevenues from hot roll steel sales.\n\n\nRodney Mott, President and Chief Executive Officer, commented, "Although\nmany of the choices we have made were difficult, we have already seen positive\nbenefits from these actions. These changes will help Stelco continue to\nimprove financial performance and...