Sault Ste. Marie, Ontario-based Essar Steel Algoma Inc., a producer of flat rolled sheet and plate products, reported Thursday EBITDA of $8.1 million for the three month period ending March 31, 2013. EBITDA, excluding exceptional items, for fiscal year 2013 was $57.3 million as compared to $321 million for fiscal 2012. The decline from fiscal year 2012 is attributed to lower shipments, depressed selling prices and higher than market iron ore costs.
For the three month period ending March 31, 2013 (fiscal Q4), the company reported a net loss of $92.7 million. Sales for the quarter were $447.7 million with shipments of 638,652 tons, down 1.5 percent from the corresponding quarter in the previous year.
Essar Steel Algoma Chief Executive Officer Kalyan Ghosh commented on the year's results, "Despite continued cost reduction measures, operating efficiencies and an improving product market mix, lackluster market conditions and contracted raw material input costs combined to negatively impact our F2013 performance. Recently announced improvements to our iron ore contract and credit agreements position the company more favorably for F2014 and beyond."