Cominco earnings highest ever (February 06, 1989)

At $213.5 million, last year’s consolidated earnings before extraordinary items surpassed the previous record of $203.7 million set in 1979. In 1987 the corporation had a consolidated profit of $172 million after including extraordinary gains of $91.3 million.

Earnings after extraordinary items for the year ended Dec 31, reached $242 million, with the gain of $28.5 million realized principally from the sale of the corporation’s Electronic Materials Division and adjustments to the 1986 restructuring provisions.

After providing for dividends on preferred shares and before extraordinary items, earnings for the year were $2.56 per common share compared with 89 cents in 1987. After extraordinary items earnings were $2.92 per share compared with $2.18 last year.

Total debt at year-end stood at $344 million, or $34.7 million below the level of the previous year. In 1988, Cominco increased its capital assets by $354.3 million principally through expenditures of $168.1 million on the Red Dog mine project, $61.7 million on the modernization of the Trail lead smelter, and $251.1 million on the Highland Valley copper mill relocation. These programs — along with the retirement of $102.9 million of preferred shares — were financed primarily out of cash flow from operations. Working capital at year-end was $418.5 million.

Sales for the year reached $1,660.4 million, compared with sales of $1,306.1 million in 1987. The Mining and Integrated Metals business segment reported a hefty operating profit of $412.9 million, compared with a profit of $188.1 million in 1987.

The improvement in operating results is attributed to the general improvement in prices for metals and cost reductions due to productivity improvements. For example, refined zinc sales at 315,500 tons were the highest in the corporation’s history due to strong markets and increased production.

The continued strength of the Canadian dollar in relation to the American dollar, however, had an adverse effect on sales revenues and earnings as a large portion of Cominco’s products are sold at prices dominated in U.S. dollars.

Once awash in red ink, Cominco Ltd. (TSE) continued its remarkable financial turnaround again in 1988 when earnings reached the highest levels ever reported by the corporation. At $213.5 million, last year’s consolidated earnings before extraordinary items surpassed the previous record of $203.7 million set in 1979. In 1987 the corporation had a consolidated profit of $172 million after including extraordinary gains of $91.3 million.

Earnings after extraordinary items for the year ended Dec 31, reached $242 million, with the gain of $28.5 million realized principally from the sale of the corporation’s Electronic Materials Division and adjustments to the 1986 restructuring provisions.

After providing for dividends on preferred shares and before extraordinary items, earnings for the year were $2.56 per common share compared with 89 cents in 1987. After extraordinary items earnings were $2.92 per share compared with $2.18 last year.

Total debt at year-end stood at $344 million, or $34.7 million below the level of the previous year. In 1988, Cominco increased its capital assets by $354.3 million principally through expenditures of $168.1 million on the Red Dog mine project, $61.7 million on the modernization of the Trail lead smelter, and $251.1 million on the Highland Valley copper mill relocation. These programs — along with the retirement of $102.9 million of preferred shares — were financed primarily out of cash flow from operations. Working capital at year-end was $418.5 million.

Sales for the year reached $1,660.4 million, compared with sales of $1,306.1 million in 1987. The Mining and Integrated Metals business segment reported a hefty operating profit of $412.9 million, compared with a profit of $188.1 million in 1987.

The improvement in operating results is attributed to the general improvement in prices for metals and cost reductions due to productivity improvements. For example, refined zinc sales at 315,500 tons were the highest in the corporation’s history due to strong markets and increased production.

The continued strength of the Canadian dollar in relation to the American dollar, however, had an adverse effect on sales revenues and earnings as a large portion of Cominco’s products are sold at prices dominated in U.S. dollars.

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