Earnings for 1989 of $442 million ($2.19 per share) after preferred dividends were announced by Noranda (TSE), compared with $603 million ($3.14 per share) for the previous year. Revenue for the year totalled $9.3 billion, compared with $8.6 billion in 1988.
The company says that while prices for many of its commodities declined steadily throughout 1989, with some exceptions the prices were generally at satisfactory levels.
During the fourth quarter last year, earnings were $58 million (25 cents per share), compared with $150 million (78 cents per share) for the same period in 1988.
The level of earnings was disappointing, the company says. Earnings of Noranda Minerals after taxes were adversely affected by about $125 million because of a variety of production problems; a massive power failure in Quebec in March and numerous power interruptions in both Quebec and Ontario during the fourth quarter were partly to blame.
Other factors, the company says, included process and ground problems, grade and back-fill shortages, and a late startup of a new facility.
The company included the results of Falconbridge Ltd. in its accounting during the fourth quarter, the nickel producer having been taken over last year by Noranda and Trelleborg of Sweden in a 50/50 partnership deal.
Earnings of two other divisions also slipped. In the case of Noranda Forest, weakening prices and the higher value of the Canadian dollar are blamed, while weakening aluminum prices and squeezed fabricating margins hurt Noranda Manufacturing. Noranda Energy results improved, reflecting higher oil prices and natural gas volumes.
The company says the higher Canadian dollar cut earnings last year by $66 million, and higher interest rates reduced earnings by $32 million. Noranda (TSE) Year ended Dec. 3119891988 Revenue (000s)$9,325,000$8,858,000 Net earnings (000s)442,000603,000 Net earnings
(per share)2.193.14003
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