Higher sales attributed to strong copper and zinc prices last year boosted the annual earnings of Asarco (NYSE) in 1989 to US$231.16 million or $5.50 per share, compared with $207.24 million, or $4.92 per share in 1988. The rise in earnings was attributed to higher average selling prices for copper and zinc and to an improved contribution from Asarco’s associated company, Mexico Desarrollo Industrial Minero (MEDISMA).
Results for the year also included previously reported items that had the net effect of lowering earnings by $20.3 million after tax, or 48cents per share. These items included a third-quarter after-tax charge of $22.7 million, related to the company’s decision to move out of asbestos and coal mining, and a credit of $5.5 million which resulted from a favorable Canadian tax decision.
For the fourth quarter ended Dec. 31, the company reported a decline in earnings to $59.11 million or $1.42 per share, compared with $73.12 million or $1.74 per share in the fourth quarter of 1988.
Commenting on the company’s annual results, President Richard Osborne said while there are signs of a slowdown for goods such as cars and housing, other domestic market segments and overseas markets remain firm.
“On balance, current demand for Asarco’s products is strong and the outlook for 1990 is good,” he said. “While prices for one of the company’s principal products — copper — has declined in recent months, it is at a satisfactory level.”006 0500,0211,0307 Asarco (NYSE)* Year ended Dec. 3119891988 Net sales (000s)$2,210,759$1,988,087 Net earnings (000s)231,165207,244 Net earnings
(per share)5.504.92 *US dollars004
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