Profit and revenues up in Rio Algom’s 3rd quarter

With earnings and revenue up again for the third straight quarter, another record year may be shaping up for Rio Algom. For the nine months ended Sept 30 the company saw its net earnings increase by nearly 5% to $69.3 million or $1.57 per share on revenues of $1.0 billion.

In the same period last year net earnings of $66.2 million or $1.50 per share were realized on revenues of $915 million. And for the entire fiscal year of 1985, in which Rio posted its highest level of earnings and revenues in its history, $88 million or $2 per share were netted on revenues of $1.2 billion.

The increase in net earnings in the current 9-month period is attributable not only to increased investment income but also to improved earnings at Lornex Mining Corp., Atlas Stainless Steels and Atlas Specialty Steels, according to George R. Albino, chairman and chief executive officer.

Lornex, a producer of copper and molybdenum in B.C., is 68.1% owned by Rio. A reduction in operating costs and all other expenses more than offset the effects of lower production and prices for copper and molybdenum and resulted in higher earnings, says Mr Albino.

The picture is not as bright in the uranium division where earnings were slightly lower due to lower selling prices and reduced production at Elliot Lake.