ALC-T
TORONTO, April 30 /CNW/ -
ALGOMA CENTRAL CORPORATION
Operating Results to March 31, 2008 and 2007
(In thousand of dollars except per share data)
Three Months Ended
March 31
2008 2007
Revenue $ 68,707 $ 52,028
Net loss $ 8,271 $ 11,736
Loss per share $ 2.13 $ 3.02
Dividends paid per common share $ 0.35 $ 0.35
The Corporation is reporting a net loss for the three months ended March 31, 2008 of $8,271 compared to a net loss of $11,736 for the same period in 2007, a decrease of $3,465.
The decrease in the net loss for the three months ended March 31, 2008 when compared to the same prior year period was due primarily to 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, and improved results of
the CSL International commercial arrangement. These improved results
were partially offset with reduced earnings of the Nelvana due to a
planned regulatory dry-docking.
- Improved earnings of the Domestic Dry-Bulk segment as a result of
additional operating days.
- 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 foreign exchange gains of $6,587 resulting from the
translation to Canadian dollars of a short term cash deposit
denominated in a foreign currency and the recognition of an
unrealized gain on a foreign currency forward contract that was
adjusted to market value at March 31, 2008. The unrealized gain on
the foreign exchange forward contract is recognized in earnings due
to the fact it is not eligible for hedge accounting because of a
timing difference between the contract maturity and the underlying
commitment the foreign exchange forward contract was hedged for due
to the delay in the expected delivery of the vessel.
The above decreases in the net loss were partially offset with the
following:
- Repair and maintenance costs associated with the increased winter
works program of the Domestic Dry-Bulk segment.
- Decrease in the earnings of the Product Tanker segment due to
additional income tax expense.
On April 30, 2008, the Board of Directors declared a dividend of $0.45 per common share payable on June 2, 2008 to shareholders of record on May 16, 2008.