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Algoma changes its name to inform investors it's more than a railway.

Algoma changes its name to inform investors it's more than a railway

At its annual meeting in April, the shareholders of Algoma Central Railway approved a change of name to Algoma Central Corporation.

The change will not alter the company's structure. However, it is hoped the new name will help show investors that the company is not just a railway, which only accounts for 20 per cent of its operations.

The corporation will continue to carry on its current business operations through its three divisions: Algoma Central Railway, Algoma Central Marine and Fraser Ship Repairs, as well as through its wholly owned subsidiary companies.

Peter R. Cresswell was appointed president and chief executive officer of the new ACC to replace the retiring Len Savoie, who remains as vice-chairman. Cresswell had been the marine division's vice-president and general manager.

The board also appointed John Black Aird deputy chairman and Stan A. Black president of Algoma Central Railway.

Bruce J. Jodrey was elected director of the corporation, succeeding his father John J. Jodrey.

In an interim report, Savoie informed shareholders that net income for the three months ending March 31 decreased from $982,000 in 1989 to a loss of $2.39 million in 1990.

The major reasons for the loss were a 24-per-cent reduction in shipping days for the marine division, the discontinuance of $2.5 million in annual assistance from the federal government for the rail division, and increased interest expense.

Revenue decreased 14 per cent from $16 million in 1989 to $13.78 million in 1990. Revenue decreases of $2.36 million in the marine division and $378,000 in the rail division were partially offset by an increase of $448,000 in the real estate division.

Savoie reported that first-quarter results were not necessarily indicative of results for the full year, since the effects of weather on transportation operations vary every year.

On April 26 the board of directors declared a dividend of five cents per common share payable June 1 to shareholders of record on May 18.
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Title Annotation:Algoma Central Corporation
Publication:Northern Ontario Business
Date:Jun 1, 1990
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