Inco reports its first loss since 1984

Citing a 12% decline in nickel prices, Inco (TSE) reported a net loss of US$17.6 million (21 cents per share) for 1992 compared with 1991 earnings of US$82.6 million (74 cents per share).

Inco’s average realized nickel price dropped to US$3.38 per lb. last year, down from US$3.84 in 1991. In the fourth quarter of 1992, when the nickel producer lost US$28.9 million, prices were 15% lower than the year before. Last year’s loss was Inco’s first in eight years. In 1984, when nickel traded at about US$2.35 per lb., the company lost US$77 million.

Inco says high levels of nickel exports from Russia and reduced demand in some nickel-consuming countries created oversupply in 1992 and drove prices down. Inventories on the London Metal Exchange jumped by 300% to record levels during the year.

Results included expenses of US$9.7 million associated with the December shutdowns at the company’s primary metals operations in Canada and severance costs of US$8.1 million.