Steel Mills

Essar Steel Algoma Announces Profitable FY 2015

Written by Sandy Williams

Essar Steel Algoma announced a return to profitability with income from operations of CDN $76.3 million at the closing of its fiscal year 2015 on March 31, 2015.

“Fiscal 2015 marked a turnaround for Essar Steel Algoma. Through the recently announced Modernization and Expansion Program, we expect to offer a much broader range of advanced steel grades over the next 36 months as we introduce best available technology” says Kalyan Ghosh, Chief Executive Officer of Essar Steel Algoma. “When combined with our return to profitability and low cost model, this investment will put us in a much stronger competitive position.”

The company completed a comprehensive recapitalization and refinancing of US $1.4 billion in FY 2015 that returned it to profitability after a FY 2014 loss of CDN $240.4 million.

“Operationally, the business achieved a CDN $12 per ton reduction year over year in conversion costs while maintaining shipment volumes despite an onslaught of imports and recovering demand,” wrote Essar Steel Algoma in its earnings announcement.

Sales for FY 2015 were CDN $1,984.2 million, up 11.9 percent y/y on shipment volumes of $2.398 million tons. Shipments in the last quarter of the fiscal year were up 10.7 percent year over year.

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