Lower realized nickel prices throughout the year affected both third-quarter and 9-month cumulative earnings at Inco (TSE). Third-quarter earnings fell to US$97 million (92 cents per share) from US$129.3 million ($1.23 per share) in the third quarter of 1989. Earnings for the first nine months of 1990 totalled US$369.6 million ($3.50 per share) compared with a record US$601.3 million ($5.67 per share) in the same period last year. The drop came despite a US$112.2- million ($1.08 per share) after-tax gain from Inco’s partial sale of its Indonesian subsidiary, P.T. Inco, in the second quarter.
Inco realized an average nickel price of US$4.03 in the first nine months of 1990, compared with US$5.96 during the same period last year. Third-quarter prices averaged $4.46 compared with $5.28 last year.
Higher production costs and lower nickel deliveries also took a toll on operating earnings for primary metals, which were down 60% for the first nine months of the year. Higher precious metals prices helped to offset this decline in the third quarter.
During the first nine months, Inco generated a cash surplus, before financing activities, of US$169 million, which included proceeds of US$249 million from the sale of a 20% interest in P.T. Inco. As of Sept. 30, Inco’s debt totalled US$999 million, for a debt- equity ratio of 37-to-63. Inco (TSE)* 3 months ended Sept. 30 1990 1989 Revenue $787,400 $869,400 Net earnings 97,000 129,300
per share 0.92 1.23 9 months ended Sept. 30 Revenue $2,464,800 $3,075,100 Net earnings 368,600 601,300
per share 3.50 5.67004
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