Dofasco Reports Second Quarter Earnings

Dofasco Inc. reported second quarter net income of $24.2 million. This compares favorably to the first quarter figures, when the company reported an $18.7 million loss.

Consolidated sales in the second quarter increased to $775.4 million from $745.7 million in the first quarter. Flat rolled and tubular steel shipments of 1.148 million tons in the quarter were slightly ahead of 1,128,000 tons in the first quarter.

Dofasco's Steel Operations segment reported pre-tax net income of $35.0 million in the quarter, compared to a pre-tax loss of $2.9 million in the first quarter of the year.

Low selling prices in the Canadian steel market continue to be the major reason for the decline in profitability from a year ago. The average revenue per ton of steel shipped in 2001 is more than $50 per ton below last year.

Gallatin Steel, Dofasco's joint venture minimill facility in Kentucky, maintained a strong operating performance in the second quarter, setting quarterly production and shipment records.