Diversified resource company Noranda (NOR-T) says weak commodity prices caused its net earnings to drop by almost 50% in 1996, despite a 16% increase in cash flow to a record $1.5 billion.
The company reported earnings of $36 million for the fourth quarter, compared with $111 million for the same period in 1995. Earnings for all of 1996 amounted to $254 million, compared with $524 million in the previous year.
Noranda’s mining and metals group earned $198 million last year, compared with $442 million in 1995. Prices for copper, aluminum and nickel were 10-20% lower last year than in 1995, the company says.
Despite the decline in earnings, Noranda Chairman David Kerr says the company is well-positioned for future growth.
The company (directly and indirectly) has four mines under development: Collahuasi in Chile, Raglan and Bell Allard in Quebec, and Lockerby (a past producer) in Ontario. It is also committed to expanding or modifying four smelters and refineries, three of which are in Quebec.
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