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Press release from CNW Group

ALGOMA CENTRAL CORPORATION Operating Results

Wednesday, November 03, 2010

ALGOMA CENTRAL CORPORATION Operating Results15:55 EDT Wednesday, November 03, 2010For the Three and Nine Months Ended September 30, 2010 and 2009(In thousand of dollars except per share data)ALC-TTORONTO, Nov. 3 /CNW/ - Three Months Ended Nine Months Ended September 30 September 30 20102009  20102009Revenue$159,506$ 151,454  $ 371,963$ 353,088Net earnings$ 17,218$ 20,620  $ 11,633$ 15,676Earnings per share$ 4.43$ 5.30  $ 2.99$ 4.03Dividends paid per common share$ 0.45$ 0.45  $ 1.30$ 1.30Third Quarter Results The Corporation is reporting net earnings for the three months ended September 30, 2010 of $17,218 compared to $20,620 for the same period in 2009.The decrease in net earnings of $3,402 was due primarily to lower operating earnings after income tax in the Domestic Dry-Bulk segment with a partial offset from improved operating earnings after income tax with all the other operating segments.The Domestic Dry-Bulk segment's operating earnings net of income tax decreased by $5,670. Increases in earnings resulted from additional operating days and reduced spending on repairs and maintenance; however, these increases were more than offset by an unfavourable change in the freight mix, reduced earnings from payments relating to minimum contractual obligations and an unrepeated gain in the prior year quarter of $2,085 on insurance proceeds related to the loss of a vessel.The Product Tankers segment operating earnings net of income tax increased by $1,975 due largely to an increase in operating days for the Algonova and the AlgoCanada which were not in service for most of the third quarter in 2009, along with increased operating earnings from the Algoma Dartmouth which was purchased in January 2010.The Ocean Shipping segment operating earnings net of income tax increased marginally by $154. Changes in earnings were associated with costs for regulatory dry-dockings, the effect of a lower average foreign exchange rate in 2010 compared to 2009 to convert earnings denominated in U.S. dollars to Canadian dollars and a decrease in income taxes. There were three planned regulatory dry-dockings in the 2010 third quarter and one in the prior year quarter.The Real Estate segment operating earnings net of income tax increased by $311 due primarily to better results from the hotel operations in Sault Ste. Marie.Nine-Month ResultsFor the nine months ended September 30, 2010, the Corporation is reporting a decrease in net earnings of $4,043 to $11,633 compared to net earnings of $15,676 for the same period in the prior year. The decrease was largely due to a reduction in net foreign exchange gains.The Domestic Dry-Bulk segment operating loss net of income tax decreased from $6,203 in 2009 to $4,275 in 2010 due primarily to more operating days, an improved freight mix and a decrease in repair and maintenance costs.The Product Tankers segment operating earnings net of income tax increased by $604 due to a reduction in operating costs, primarily for planned regulatory dry-dockings. These decreases in operating expenses were partially offset with reduced earnings from fewer operating days for the domestic operations resulting from reduced market demand.The Ocean Shipping segment operating earnings net of income tax decreased by $3,390 due to higher costs for planned regulatory dry-dockings. There were three planned and one unplanned regulatory dry-dockings in 2010 versus three planned in 2009. Also contributing to the decrease was the effect of the lower average foreign exchange rate in 2010 versus 2009 to convert earnings denominated in U.S. dollars to Canadian dollars.The Real Estate segment operating earnings net of income tax decreased from $2,910 in 2009 to $2,499 in 2010 due primarily to reduced occupancy at the shopping mall in Sault Ste. Marie.In 2009 to September 30, the net gains on the translation of foreign-denominated assets and liabilities were $3,208 compared to a net loss of $153 for the same period in 2010. The decrease of $3,361 is due primarily to lower gains in 2010 on U.S. denominated debt from the fluctuation of the Canadian dollar against the U.S. dollar, and a realized loss in 2010 versus gains in 2009 on the return of capital from foreign subsidiaries.On November 3, 2010, the Board of Directors declared a dividend of $0.45 per common share payable on December 1, 2010 to shareholders of record on November 17, 2010.For further information: Greg D. Wight, FCA President and Chief Executive Officer 905-687-7850 Peter D. Winkley, CA Vice President, Finance and Chief Financial Officer 905-687-7897