UPDATE - Ivaco posts Q1 loss, suspends preferred divs
Wednesday May 14, 2003
TORONTO, May 14 - Ivaco Inc. on Wednesday posted a first-quarter loss amid a weakening U.S. dollar and higher costs for scrap and other raw materials, and said it would suspend dividends on some of its preferred and second preferred shares.
The Quebec-based fabricated steel producer said it lost C$1.3 million ($0.9 million), or 13 Canadian cents a share, compared with a profit of C$2.8 million, or 4 Canadian cents a share, a year ago.
Revenues were up slightly at C$234.4 million from C$230.2 million, with the company's steel segment reporting the most significant improvement due to a higher volume of wire rod shipments.
"The increase of our raw material cost combined with the impact of the stronger Canadian dollar in relation to the U.S. dollar make it necessary for the company to implement further aggressive cost cutting and cash conservation measures," said Paul Ivanier, Ivaco's president and chief executive, in a statement.
The company's board has decided not to declare dividends on any of the company's preferred shares and second preferred shares, which normally would have been declared at this time and would be payable on July 1.
Ivaco fell 10 Canadian cents to C$1.16 on the Toronto STock Exchange on Wednesday morning. |
