A continued deterioration in world nickel markets was a major factor in the third-quarter operating results of the primary metals business of Inco (TSE).
The company was hit by rising inventories and lower prices. Inco’s realized nickel price averaged US$2.60 per lb. during the quarter (down 25% from last year) and US$2.83 for the first nine months of 1993 (down 19% from last year). In response to market conditions, Inco is reducing nickel output at its Canadian operations by 60 million lb.
The company’s earnings statement does not reflect the above. Helping to boost net earnings was a gain from the sale of Inco’s majority interest in gold producer TVX Gold.
The company recorded third-quarter earnings of US$91.2 million (83 cents per share), compared with US$10.6 million (9 cents per share) for the same period in 1992. Earnings for the first nine months were US$66.4 million (58 cents per share), compared with US$11.3 million (7 cents per share) last year.
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