Sault Ste. Marie, Ontario-based flat rolled and plate steelmaker Essar Steel Algoma Inc. reported a net loss of $88.4 million for the three month period ending September 30, 2012. The loss for the three month period reflects the impact of lower selling prices for the Company's products, lower volumes and higher costs compared to the three month period ending September 30, 2011. Compared to last quarter, selling prices decreased by 7.3 percent, shipments were down 15 percent, and costs increased 8.5 percent. Shipments in the quarter were 548,110 tons, generating $410.9 million in revenue for the period.
Chief Executive Officer, Kalyan Ghosh commented on the results, "Though soft steel markets led to weaker financial performance, there were a number of significant accomplishments in the quarter. Safety performance remained strong, a new SAP Enterprise Resource System was launched, and liquidity improved as a result of a new US$350 million term loan agreement. These initiatives, combined with continued cost reduction efforts bode well for improved performance in the next quarter."