Sharp increase in quarterly profit for Noranda Inc.

Earnings for Noranda Inc. (TSE) continue to sparkle. The resources giant recorded a second-quarter net income of $186 million on total revenue of $2.3 billion, compared with $103 million on revenue of $1.9 billion for the same period in 1987.

Earnings per share during the quarter were 98 cents (90 cents on a fully- diluted basis), compared with 66 cents for the second quarter last year.

Included in the second-quarter results is a net after-tax gain of $36 million arising from the sale of the company’s 10% equity position in Polysar Energy and Chemical.

During the first six months of 1988, Noranda recorded earnings of $314 million ($1.64 per share, or $1.53 fully-diluted), compared with $133 million (80 cents per share) for the same period last year.

Higher metal prices have translated into higher revenue for the company, whose Noranda Minerals division boosted earnings by 60% during the first six months of this year compared with 1987. Partly offsetting the division’s earnings is an increase in net exploration expenditures. Noranda is the major shareholder in Hemlo Gold Mines, which operates the highly successful Golden Giant gold mine at Hemlo.

Noranda says the rising value of the Canadian dollar is partly offsetting the strong markets for its products. Earnings were about $46 million less than they would have been had the dollar remained at the average level of the first-half of 1987, the company says.

The company reports its total debt less cash, as of June 30, equalled 19% of shareholders’ equity plus minority interest.

For all of 1987, Noranda recorded net earnings of $343.5 million ($2.14 per share) on revenue of $7.4 billion.