Booming nickel and copper prices are finally being reflected in the bottom line at Inco Ltd. — the world’s largest producer of nickel. For the fourth quarter ended Dec 31, 1987, the nickel giant earned $75 million or 70 cents per share. That performance pushed the over-all year earnings to $125 million or $1.09 per share. This compares to breakeven results generated in 1986 of 16 cents per share.
Of significance, the strong fourth quarter performance is based on an average nickel price of $2.57(US) per lb and 86 cents per lb of copper. Both metals currently trade on the London Metals Exchange at $3.70 and more than $1 per lb respectively. As a result, Inco is looking for substantial improvements in earnings during the first quarter of this year.
The higher prices have prompted Inco to boost production, which was at its highest level since 1974. For the year, nickel production totalled 430 million lb, up from 357 million lb in 1986. Finished nickel inventories were drawn down to 57 million lb — the lowest level since 1970.
During the year, Inco also reduced long term debt by $111 million to $810.9 million.
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