Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (891)	10/24/2001 2:47:50 PM
From: craig crawford	Read Replies (1) \| Respond to of 1643

Noranda, Inco hurt by sliding metal prices nationalpost.com Drew Hasselback Financial Post Two of Canada's most powerful mining companies, Noranda Inc. and Inco Ltd., are suffering as a result of slumping metal prices. Noranda is cutting 550 jobs to save more than $60-million a year, the company said yesterday as it reported a third-quarter loss. Noranda reported a loss of $60-million (27¢ a share) on sales of $1.46-billion in the Sept. 30 third quarter, compared with a profit of $52-million (20¢) on sales of $1.66-billion in last year's quarter. The company blamed the weak economy for low metal prices, lower sales volumes and a four-week maintenance shutdown at the smelter in Sudbury. David Kerr, CEO of Noranda, said the loss does not reflect the company's improvements in productivity and output expansion. "However, with the sharp decline in business conditions and in metal prices, our profitability is suffering. The current environment requires us to intensify our efforts to improve our profitability and maximize our financial flexibility." Noranda's job cuts include 150 positions in Canada. The average price of nickel on the London Metals Exchange in the third quarter was 34% down from last year. Copper is down 21%, zinc 30% and aluminum 12%. Inco Ltd.'s profit fell almost 50%. Inco's net profit after currency adjustments was US$33-million (US14¢ a share) on sales of US$434-million for the third quarter of 2001, compared with US$62-million (US31¢) on sales of US$642-million in the corresponding 2000 period. "The economic downturn continues to have a negative impact on nickel demand and prices," said Scott Hand, chief executive of Inco. Inco's average realized price for nickel during the quarter was US$2.80 per pound, down 28% from last year. Nickel shipments in the quarter dropped 14%. Noranda is dealing with the downturn by cutting its exploration, research and administrative expenses in order to save about $45-million per year. Including its 55%-owned subsidiary Falconbridge Ltd., Noranda employs about 17,000 people worldwide, with 9,700 in Canada. Noranda will save another US$14-million a year by closing its American Racing Equipment wheel factory in Kentucky. That will eliminate almost 300 jobs. The restructuring will result in a $20-million charge in the fourth quarter. "We are planning for a difficult business environment for the next six months," said Aaron Regent, chief financial officer, in a conference call yesterday. "Our view is that a recovery in metal prices will be dependent on a recovery in the world economy."