ALC-T
TORONTO, Aug. 5 /CNW/ -
ALGOMA CENTRAL CORPORATION
Operating Results
For the Three and Six Months Ended June 30, 2008 and 2007
(In thousand of dollars except per share data)
Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
Revenue $196,969 $163,136 $265,676 $215,164
Net earnings $ 14,196 $ 16,522 $ 5,925 $ 4,786
Earnings per share $ 3.65 $ 4.25 $ 1.52 $ 1.23
Dividends paid per
common share $ 0.45 $ 0.35 $ 0.80 $ 0.70
The Corporation is reporting net earnings for the three months ended June
30, 2008 of $14,196 compared to $16,522 for the same period in 2007. The
decrease in the net earnings for the second quarter ended June 30, 2008 of
$2,326 when compared to the same prior year period was due primarily to the
following:
- Decrease in earnings of the Product Tankers segment due primarily to
costs and out of service days associated with the planned regulatory
dry-docking of the Amalienborg.
- Decrease in net foreign exchange gains of $3,572. In the second
quarter of 2008, the Corporation incurred a net foreign exchange loss
due mainly to the translation to Canadian dollars of Euro denominated
short term cash deposits. In the second quarter of 2007 the
Corporation had net foreign exchange gains on the translation of
foreign-denominated net liabilities resulting from the strengthening
of the Canadian dollar against the U.S. dollar.
The above decreases in the earnings were partially offset primarily by the
following:
- Improved earnings of the Domestic Dry-Bulk segment as a result of
higher rates.
- Improved earnings in Ocean Shipping due largely to the addition of
the Honourable Henry Jackman on August 1, 2007, improved results of
the CSL International commercial arrangement offset partially by the
reduced earnings of the Ambassador and the Nelvana due to planned
regulatory dry-dockings.
For the six months ended June 30, 2008 net earnings were $5,925 compared
to $4,786 for the same period in the prior year. The increase in earnings of
$1,139 was a result of the following:
- Improved earnings for the Ocean Shipping segment due mainly to
additional operating days as a result of the addition of the
Honourable Henry Jackman on August 1, 2007, improved results of the
CSL International commercial arrangement and earnings from a
positioning cargo for a vessel going to a scheduled dry-docking.
These improved results were partially offset with reduced earnings of
the Ambassador and Nelvana due to planned regulatory dry-dockings.
- Improved earnings of the Domestic Dry-Bulk segment as a result of
higher rates and additional operating days. These increases in
earnings were partially offset with increased repair and maintenance
costs associated with the increased winter works program of the
Domestic Dry-Bulk segment.
- Improved earnings for the Real Estate segment due primarily to a gain
realized on the sale of one of its light industrial properties in St.
Catharines, Ontario.
- Increase in net foreign exchange gains of $3,015 resulting primarily
from gains on the translation to Canadian dollars of Euro denominated
short term cash deposits.
The above increases in net earnings were partially offset with reduced earnings of the Product Tankers segment due primarily to costs and out of service days associated with the regulatory dry-docking of the Amalienborg.
On July 2, 2008, the Board of Directors declared a dividend of $0.45 per common share payable on September 2, 2008 to shareholders of record on August 19, 2008.