West Kootenay share sale boosts Cominco earnings

Following the sale of its shares in West Kootenay Power and Light Co., Cominco Ltd. has reported unaudited consolidated earnings of $92.6 million for the 9-month period ended Sept 30.

That compares with consolidated losses of $8.2 million (including an extraordinary gain of $41.4 million) during the same period last year.

Earnings per share for the first nine months of 1987 were $1.14 compared with losses of 28 cents in 1986.

Cominco says earnings for the third quarter of 1987 were $7 million or 4 cents per common share on sales of $208.1 million before including extraordinary gains of $49.1 million. That compares with with a loss of $13.9 million (27 cents per share) on sales of $216.3 million during the third quarter of 1986.

Third-quarter earnings from the corporation’s mining and integrated metals business segment totalled $42.7 million compared with $9.5 million during the same period last year. Cominco says the increase is due to improved lead and copper prices and greater sales volumes of zinc and copper concentrates.

Working capital at Sept 30, was $380.2 million, up from $210.6 million in December, 1986, Cominco says. The company’s total debt-to- debt-plus-equity ratio by the close of the third quarter was 26% compared with 44% in December. Cash and short term investments totalled $116.1 million, an increase of $112.1 million at December, 1986.

While the 17-week strike at Cominco’s Trail and Kimberley operations affected the company’s operating results during the quarter, the company was able to meet some sales commitments from inventories that were in transit during the strike.

During the recent third quarter, Cominco reported an operating loss of $3.9 from its fertilizer business segment. That compares with losses totalling $1 million last year. Third quarter sales were up to $30.6 million from $24.5 million last year. However, recent price increases for potash and nitrogen in the U.S. should improve fourth quarter results, the company says.