Noranda (NRD-T) turned in second-quarter earnings of $28 million ($0.09 per share) on revenues of $1.65 billion, compared with earnings of $84 million ($0.33) on $1.87 billion for the same period last year.
The major says that the weaker results are due to both lower selling prices and lower sales volumes. These, in turn, are a reflection of reduced customer demand in a weakening economic environment and lower copper-smelter throughput due to scheduled maintenance shutdowns.
The declining earnings were partially offset by a tax credit of $11 million due to the reduction in future tax rates in Ontario and a $45-million after-tax gain from the sale of the investment in Newmont Mining (NEM-N).
Highlights for Noranda during the quarter included: mechanical completion and ramping-up at the Antamina copper-zinc mine in Peru; the selling of its interest in Newmont for $243 million; the acquisition of the Lomas Bayas copper project and Fortuna de Cobre copper deposit on July 26th for US$175 million; the purchase of the Montcalm nickel-copper property for $14 million; the signing of a letter of intent to purchase the El Pachon copper deposit in Peru for US$30 million; and an extension of an electronic hardware recycling business with Hewlett-Packard with the opening of a new plant in Tennessee.
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