Ivaco Reports Drop in Figures

Paul Ivanier, president and CEO of Ivaco, a Canadian steel company, announced that quarterly earnings were $14.1 million compared to $25.1 million in 2002. The Steel segment reported operating earnings of $8.8 million in 2003 compared to $14.3 million last year, while the Fabricated Steel Products segment's operating earnings were $7.1 million compared to $14.5 million in 2002. The Precision Machined Components segment reported operating earnings of $0.6 million versus $1.1 million last year.

Ivanier said that although operating earnings were lower than those of last year's first quarter they were substantially higher than operating earnings for the third and fourth quarters of 2002. Operating earnings for the first quarter of 2003 were impacted by higher scrap and other raw material costs, which have substantially increased since the beginning of the year, as well as by anti-dumping duty margins and the negative impact of the higher Canadian dollar versus the U.S. dollar.

The company said that despite the sluggish economic conditions that presently prevail in the United States, Ivaco has been able to maintain its market position in the U.S.A. However, raw material costs have increased substantially since the end of last year.