Reflecting the general economic slowdown of the world’s major industrial countries, the first-quarter results of Kerr Addison Mines (TSE) were off compared with the same 3-month period in 1989.
Net earnings during the quarter totalled $5.5 million on net sales of $44.6 million, down from earnings of $8.5 million on sales of $51.3 million last year.
The company attributed the decline to lower prices for zinc and precious metals and the stronger Canadian dollar.
The quarterly results contrast with the company’s 1990 earnings picture. Buoyed in large part by the success of its 50.4% owned subsidiary Minnova (TSE), Kerr reported improved operating results and increased operating cash flow in 1990.
A member of the Noranda group of companies, Kerr recorded net income in 1990 of $17.6 million on net sales of $211.6 million, compared with income of $12.6 million on $131.7 million for 1989.
At Kerr’s recent annual meeting in Toronto, President Ian Bayer reminded shareholders of the company’s intention to sell its 30.5% interest in oil and gas producer Anderson Exploration. Kerr is hoping to realize $100 million from this sale.
“Our decision to sell this quality asset is solely based upon our wish to concentrate our funds and management resources on our core business of mining what we know best,” Bayer said.
Kerr’s major mining asset, until the company sold it a couple of years ago, is the long-producing Kerr gold mine at Virginiatown in northeastern Ontario. Kerr Addison Mines (TSE) 3 months ended Mar. 31 1991 1990 Revenue $44,598 $51,340 Net earnings 5 ,476 8,541
per share 0.31 0.49
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