Some earnings news and 2004 outlook from Falconbridge...
Falconbridge 2003 net earnings increase to $194 million
2/5/04
TORONTO, Feb 5, 2004 /PRNewswire-FirstCall via COMTEX/ --
Falconbridge Limited (TSX: FL) today reported consolidated earnings of $194 million or $1.05 per common share ($1.04 per share on a diluted basis) for 2003. This compares with earnings of $50 million ($0.24 per common share on a basic and diluted basis) for 2002.
Earnings of $94 million ($0.52 per common share or $0.51 per share on a diluted basis) were reported for the fourth quarter 2003, compared to $23 million ($0.12 per common share on a basic and diluted basis) for the fourth quarter 2002.
Commentary
Full-Year 2003
'2003 was a year of significant progress for Falconbridge. Our decision to focus on our strengths - in nickel and in copper - continued to pay dividends as fundamentals for these metals kept improving. Higher metal prices combined with solid production resulted in net earnings of $194 million,'said Aaron Regent, President and Chief Executive Officer. 'Operationally, we met or exceeded most of our targets, improved the position of our assets and advanced our new projects. Two new exploration discoveries in Sudbury, Nickel Rim South and Fraser Morgan, continued to grow. We managed the balance sheet and improved our debt ratios by funding our operations and capital expenditures from operating cash flows and also added to our liquidity by extending the term of our debt and establishing new credit relationships.'
Outlook
'The outlook for metal markets looks very promising,'Mr. Regent added. 'The world's economies are expected to continue to recover, providing a solid backdrop for metal demand. This demand combined with insufficient additions to supply will result in deficits for both nickel and copper and will result in a period of high metal prices.'
Production of copper at Falconbridge is expected to increase. However, nickel production will be lower as a result of the current labour disruption at the Sudbury operations. This will reduce output by about 2,000 tonnes per month.
'We will continue to advance our new projects, particularly in nickel, which will further diversify our sources of production. All of these opportunities will allow us to continue to create value for our shareholders.' |
