Noranda earnings in decline

Lower metal prices contributed to a drop in the second-quarter and 6-month earnings of Noranda (TSE)).

The resources giant announced net earnings for the six months ended June 30 of $33 million (two cents per share) compared with $115 million (50 cents per share) for the same period in 1990.

Second-quarter earnings were $18 million (two cents per share) compared with $56 million (24 cents per share) last year. The second-quarter results include net after-tax gains on sales of assets (including Canada Wire and Cable) of $68 million.

The company’s mining group, Noranda Minerals, recorded second-quarter earnings of $5 million compared with $79 million for the same period in 1990. The company attributed the decline mainly to lower zinc, copper and gold prices, and the lengthy strike (settled during the second quarter) by workers at associated company Brunswick Mining and Smelting.

Of the parent company’s four divisions (minerals, forestry, energy and manufacturing), only forestry reported an operating loss for the second quarter.