Business
Stelco reports third quarter results
Stelco reports third quarter results.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\nHAMILTON, ON, Oct. 24 /CNW/ - Stelco Inc. ("Stelco" or the "Corporation")\n(TSX:STE) today reported net income for the quarter ended September 30, 2007\nof $38 million ($1.26 per fully diluted share), compared to a net loss of\n$41 million (loss of $1.51 per share) for the second quarter of 2007 and a\nloss of $25 million (loss of $0.93 per share) in the third quarter of 2006.\nNet income for the third quarter of 2007 included workforce reduction costs of\n$5 million and foreign exchange gains of $36 million.\n\n\nEBITDA(x) increased to $67 million for the third quarter ended\nSeptember 30, 2007, an improvement of $14 million over the second quarter of\n2007. The improvement in EBITDA(x) was largely driven by a significant\nimprovement in the cost structure resulting from the strategic and operational\nrestructuring initiatives over the past 18 months plus lower input costs,\noffset by lower selling prices.\n\n\nProposed Acquisition of Stelco by US Steel Corporation\n\n\nOn August 26, 2007, Stelco and US Steel Corporation ("US Steel") entered\ninto an arrangement agreement providing for a subsidiary of US Steel to\nacquire all of the outstanding common shares of Stelco for $38.50 in cash per\ncommon share and Stelco will become an indirect wholly-owned subsidiary of\nUS Steel under a plan of arrangement pursuant to the provisions of applicable\ncorporate legislation. As part of the acquisition, holders of warrants to\npurchase common shares will receive, for each warrant held, a cash payment\nfrom Stelco equal to $27.50 (being the difference between $38.50 and the\nexercise price of the warrants) and holders of options to purchase common\nshares will receive, for each option held, a cash payment from Stelco equal to\nthe difference between $38.50 and the exercise price of such option.\n\n\nIn connection with the acquisition, it is anticipated that the floating\nrate notes will be redeemed and Stelco's secured term and asset based loans,\nas well as a term loan made by a subsidiary of Stelco will be retired.\n\n\nCompletion of the acquisition is subject to customary conditions,\nincluding Stelco shareholder approval, court approval and receipt of certain\nregulatory approvals. Subject to the satisfaction of such conditions, it is\nanticipated that the acquisition will be completed on or about...