Sharply lower profit was reported in the quarter ended June 30 by Hudson Bay Mining and Smelting (TSE), Canada’s fourth largest producer of copper and zinc. The company said its profit in the second quarter fell nearly 40% to $6 million from $10.7 million in the same period a year earlier. Revenue rose to $111 million from $108.6 million a year ago.
Chairman John Ellis attributed the lower earnings to increased costs, lower realized prices for base metals, and reduced output because of a planned 11-day shutdown for regular maintenance at the company’s smelter in northern Manitoba.
Average London Metal Exchange prices for zinc increased about 3% during the quarter, while Comex prices in New York for copper declined 2%. Hudbay’s quarterly metal production totalled about 26.4 million lb. zinc, 18.8 million lb. copper and 2.8 million lb. nickel.
In the first six months of 1990, the company reported net earnings of $7.3 million on revenues of $205.9 million, down 67% from net income of $22.6 million on revenues of $235.2 million in the same period a year ago.
Hudbay’s parent, New-York- based Inspiration Resources (TSE), reported second-quarter net income of $36.6 million (55 cents per share) on revenue of $630.4 million, compared with net income of $36.2 million (54 cents per share) in the year-earlier period.
Hudbay is a wholly owned subsidiary of Inspiration Resources which also has interests in coal, precious metals and fertilizers.
Luxembourg-based Minorco is the principal shareholder of Inspiration with a 42% voting and 56% equity interest.006 Hudson Bay Mining and Smelting (TSE) $000s except per share items 0600,0206,0300,0008 3 months ended June 30 1990 1989 Revenue $111,000 $108,600 Net earnings 6,000 10,700004
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