Inco-Falconbridge earnings July 26/88 general news must go

Canada’s two big nickel producers attained record earnings levels in the second quarter of this year.

Inco Ltd. (TSE), booming along on higher nickel prices, had record net earnings in the quarter of $190.2 million, or $1.80 per share, compared with earnings of $13.8 million, or 11 cents a share, in the second quarter of 1987. (Dollar amounts for Inco are expressed in U.S. currency).

Inco’s earnings in the first half of 1988 were $316.1 million, or $2.98 a share, higher than any full year’s earnings in the history of the company. By contrast, profit in the similar period last year was only $8.8 million, or 3 cents a share.

The Free World’s next biggest nickel producer, Falconbridge Ltd. (TSE), turned in a similar kind of profit performance.

In the second quarter, Falconbridge chalked up its highest earnings ever for a single quarter, reporting profit of $95 million, or $1.19 per share, against a loss of $17 million, or 17 cents a share in the similar period of 1987. Revenues soared for both companies.

In the first half this year, Inco’s revenues climbed to $1.5 billion compared with $825 million last year. In the second quarter, revenue almost doubled — from $430 million in 1987 to $834 million this year.

At Falconbridge, revenues in the 1988 first half were $940 million, against $577 million in the 1987 period.

Both companies note, too, that the stronger Canadian dollar in relation to the U.S. dollar had an adverse effect on revenues and profits.

Inco has declared a quarterly dividend of 20 cents (US), a common share, payable Sept 2 to shareholders of record on Aug 5. It also declared quarterly dividends on its 7.85% Series B preferred shares, payable Sept 1 to shareholders of record Aug 5 and on the 10% Series C preferreds, payable Nov 1 to shareholders of record Oct 3.