A strong performance by both its mining and forestry divisions enabled Noranda (TSE) to more than double net earnings for the first six months of 1995, compared with the first half of 1994.
The resource giant earned $284 million, or $1.25 per share, on revenue of $4.3 billion in the 6-month period ended June 30, compared with $125 million, or 53 cents a share, on revenue of $3 billion in the same period of the previous year.
Earnings for the mining and metals group more than tripled, rising to $247 million from $68 million. However, higher prices for copper, nickel and aluminum were partially offset by production problems at Falconbridge’s (TSE) Sudbury operations, several smelter shutdowns and a strike at Hemlo Gold Mines’ (TSE) Golden Giant mine in northern Ontario.
In the forestry division, higher pulp, paper and newsprint prices translated into earnings of $88 million, compared with $50 million a year ago.
The only sour note for the company is the fact that earnings from its oil and gas division plummeted to a mere $1 million from $41 million. The shortfall is a reflection of the whopping 40% drop in natural gas prices.
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