Earnings were down sharply for Cyprus Minerals (NYSE) during its the third quarter ended Sept. 30. The company reported third quarter earnings of US$42.2 million, compared with earnings of US$68.2 million in the third quarter of 1989.
For the 9-month period, Cyprus reported earnings of US$97.7 million, significantly lower than the US$210.9 million for the first nine months of 1989.
The company’s copper operations continue to be the largest revenue and profit source for Cyprus. The company sold 199 million lb. copper in the third quarter for an operating profit of US$62.3 million. This represents a decrease of US$33.1 million from the third quarter of 1989.
The drop in profit was partly caused by production shortfalls which forced the company to buy copper on the open market to meet sales contracts. Cyprus bought 55 million lb. copper in the third quarter, compared with 43 million lb. in the previous year.
Copper production costs for the quarter averaged US77 cents per lb., including freight and depreciation, and accounted for US$17 million of the drop in earnings.
The average realized price for copper in the quarter was US$1.28 per lb., compared with US$1.32 per lb. in 1989, equating to a drop of about US$6 million in earnings.
Cash flow for the 9-month period was US$124 million compared with US$197.5 million in the first nine months of 1989.
Cyprus’ balance sheet remains in good health with over US$343 million in working capital and long- term debt of US$247 million.006 Cyprus Minerals (NYSE)* 3 months ended Sept. 30 1990 1989 Revenues $493,130 $463,536 Net earnings 42,179 68,222
per share 0.95 1.68 9 months ended Sept. 30 Revenues $1,387,931 $1,352,820 Net earnings 97,707 210,936
per share 2.12 5.12004
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