An increase in the value of the Canadian dollar as well as a drop in coal shipments and price pushed Westar Mining (TSE) into a loss position. The company reports a loss of $1.6 million in the third quarter ended Sept. 30, on revenues of $112.9 million. This compares to earnings of $51.5 million in the third quarter of 1990 on revenues of $121.4 million.
For the nine months ended Sept. 30, Westar reported a loss of $21.3 million compared with net earnings of $38.6 million in the first nine months of 1990. Revenue dropped to $340.4 million from $350.7 million last year. The 1990 results included gains associated with the company’s debt restructuring and a $10.5-million gain from an insurance settlement. Operating income for the third quarter was $3.5 million compared with $5.6 million last year. Westar had an operating loss of $11.9 million for the first nine months of the year compared with earnings of $3.9 million last year.
Westar notes that the drop in revenue for the 9-month period caused by lower coal shipments and the higher Canadian dollar was largely offset by low production costs and the recent decline in interest rates.
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