Asarco triumphs in ’95 first quarter

U.S. mining giant Asarco (NYSE) earned US$65.7 million, or US$1.56 per share, in the first quarter — a substantial jump from the US$26.6 million, or 64 cents per share, earned in the same period last year.

Sales were US$791 million, compared with US$443 million in the first three months of 1994.

Recently, however, Asarco increased its interest in Southern Peru Copper (SPC) to 63% from 52.3% and consolidated the financial statements of that company with its own. Had SPC been consolidated in Asarco’s financial statements in 1994, Asarco’s first-quarter sales that year would have been US$579.7 million.

(Results for the 1994 first quarter included a US$31.9-million after-tax gain on the sale of Asarco’s remaining 45.3% interest in Asarco Australia, and a US$2.6-million after-tax gain related to the recovery of a bad debt previously written off.)

While a modest drop in precious metals prices over the past year upset Asarco’s balance sheet, a rise in the prices of several base metals — notably molybdenum, which climbed to US$13.77 from US$2.75 — boosted the company’s profits.

According to Asarco Chairman Richard de J. Osborne, “Asarco’s earnings improved in the first quarter of 1995 [because of] higher base metal prices, lower costs and operating improvements in all of our major businesses. Earnings also benefited substantially from the company’s interest in SPC.”