Sherritt Gordon’s bottom line hurt by fertilizer division

A major reduction in earnings in fertilizer operations was the prime reason behind the 81% profit drop posted by Sherritt Gordon Mines at the recent 9-month mark.

Net earnings of $1.688 million (7 cents per share) were realized on revenues of $308.7 million for the 9 months ended Sept 30, a sharp drop from the $8.939 million (26 cents per share) on revenues of $348.9 million a year-earlier.

Looking specifically at the third quarter, a net loss of $2.9 million was posted, a slight increase over the net loss of $2.8 million posted in the same 3-month period of 1985.

President Russell Latham explains while operating profits from fertilizers and the refining portion of the company’s metals operations were significantly lower in the current quarter, the reduction was offset by improved results from mining.

Third quarter fertilizer results in 1985 were inflated by the inclusion of $6 million insurance proceeds received during the period, he says.

However, financing costs were lower in this year’s quarter, reflecting the more favorable interest rate levels than in 1985.