Increased sales boost Cyprus quarterly earnings

Increased sales of produced copper at higher prices enabled Cyprus Minerals (NYSE) to report a 36% increase in net earnings for its 1992 third quarter from the comparable period a year earlier.

The Colorado-based company’s third-quarter earnings were US$41.4 million, compared with 1991 third-quarter earnings of US$30.4 million. These results, however, exclude second-quarter writedowns and first-quarter reorganization expense.

Cyprus previously reported first half 1992 after-tax charges of US$334.2 million for asset writedowns and a reorganization provision. Including these charges, Cyprus’ loss for the first nine months of this year was US$255.6 million, which compares to net earnings of US$71.6 million in the first nine months of 1991.

The Colorado-based firm attributed its improved performance to higher coal production and sales, and productivity improvements which lowered coal costs by almost US$3 per ton.

Cyprus Minerals’ Chairman Milton Ward said the company is continuing to concentrate on streamlining the organization and improving productivity at all operations.

“Third-quarter results were encouraging, especially in coal, where results have improved in the face of weak markets,” Ward said. “In copper, we continue to examine and invest in major opportunities that will yield significant cost reductions. During the quarter we approved expenditures to acquire a fleet of new, larger, state-of-the-art trucks and shovels for our major copper mines.”

Ward also said Cyprus is continuing to evaluate a number of major opportunities, including the building of a refinery to become self-sufficient in refining all its copper from the expanded smelter facility, increasing copper production capacity, and constructing co-generation power facilities to reduce costs.