Improved second-quarter and first-half results are attributed by Noranda (TSE) to stronger prices and improved sales volumes for many of the company’s principal products and to more favorable currency exchange rates.
The company reported second-quarter earnings of $81 million and 6-month earnings of $125 million. Earnings for the quarter include $21 million of net investment and asset sale gains, including a dilution gain on the reduction in ownership of Falconbridge (TSE) to 47.5% from 50%.
These results compare with second-quarter earnings of $1 million and a first-half loss of $30 million in 1993.
Second-quarter earnings for Noranda’s mining and metals group were $51 million, compared with $22 million for the same period last year. Increased nickel, copper and gold production, together with higher precious metal, potash and aluminum prices, accounted for most of the improvement. Copper and nickel prices began to trend upward in June.
The initial public offering of common shares of Falconbridge raised $715 million of new capital; Noranda began fully consolidating Falconbridge as of June 30.
Elsewhere, Noranda has reached an agreement-in-principle to sell Norandex, a building products subsidiary of wholly owned Noranda Aluminum. It will be sold for US$110-120 million to Fibreboard of California.
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