St. Lawrence profits fall on asset write-off

Profit at St. Lawrence Cement Inc. fell by more than half in the fourth quarter due to a write-off of obsolete assets, the company said on Monday.

St. Lawrence Cement said net earnings were C$8.9 million ($5.9 million), or 22 Canadian cents a share, in the fourth quarter, compared with C$20.3 million, or 47 Canadian cents a share, in the year-earlier period. Sales were C$316 million versus C$262.2 million. The write-off was for C$11.1 million.

The Montreal-based company said revenues advanced in the quarter despite the onset of winter weather conditions in early December. It said most of that growth occurred in lower margin segments of the business, but that operating profit for the quarter of C$32 million matched year-earlier results.

``The outlook for 2001 remains favorable based on the expectation that current sales volumes will continue, improved cement and slag production output, the implementation of various cost reduction measures and the anticipation of a more favorable pricing environment in the United States', Patrick Dolberg, president and chief executive, said in a statement.

St. Lawrence Cement said its newly built slag grinding and distribution center in Camden, New Jersey, is slated to begin operations in the first quarter of 2001. The company expects a profit contribution from the facility this year.

Class A shares of St. Lawrence Cement were flat at C$16.20 on the Toronto Stock Exchange on Monday. The stock has ranged from a low of C$13.85 to a high of C$19.25 over the past 52 weeks.

($1 equals $1.50 Canadian) （1美元等于1.50加拿大元）