Printer Friendly

AMAX REPORTS THIRD QUARTER RESULTS

 NEW YORK, Oct. 21 /PRNewswire/ -- AMAX Inc. (NYSE: AMX) today reported a net loss for the third quarter of $60.7 million dollars ($0.77 per primary common share) and a loss for the first nine months of 1993 of $170.6 million ($2.18 per primary common share). Restating last year's results to reflect accounting changes, AMAX lost $24.6 million ($0.29 per primary common share) in the third quarter of 1992 and $133.2 million ($1.53 per primary common share) in the first nine months last year.
 The company said it recorded a loss from operations during the 1993 third quarter of $15.0 million, compared to earnings from operations of $14.4 million in the 1992 third quarter. In the first nine months of 1993 AMAX had a loss from operations of $79.1 million compared to earnings from operations of $5.6 million in the same period last year. Decline in nine-month operating earnings primarily was due to the $69 million second quarter write-down of Amax Gold's Hayden Hill mine.
 Sales in the third quarter of 1993 were $893.3 million, while sales in the third quarter of 1992 totaled $959.0 million. Nine-month sales were $2.6 billion in 1993; $2.8 billion in 1992. The sales decline reflects lower product prices in some AMAX business segments and lower volumes produced in others.
 Included in the third quarter's results were several non-recurring pretax items. Corporate charges include approximately $7 million related to the proposed Cyprus Amax merger transaction. Coal operating earnings benefited from a net gain of $4.7 million on settlement of a coal supply agreement. And Other Income, Net includes an increase in Superfund reserves of $8.2 million, a gain on the sale of oil and gas properties of $3.1 million and a gain in the settlement of outstanding notes received on the sale of magnesium properties of $2.8 million.
 Allen Born, chairman and chief executive officer of AMAX, said he expects aluminum prices to remain depressed, at least into 1994, impacting the balance of the company's pre-merger results. He said AMAX's continuing program o?st reductions, reductions in capital spending and sales of non-core assets has moderated the company's financial loss.
 AMAX announced on May 25 that it had entered into a merger agreement with Cyprus Minerals Company of Denver. Under the agreement, AMAX will spin off its aluminum company and distribute approximately 28 percent of the stock of Amax Gold Inc. to AMAX shareholders, before merging the balance of its assets with Cyprus. Shareholders of AMAX and Cyprus are to vote on the merger and the distributions November 12.
 "AMAX has some of the lowest cost operations in our industries," Born said. "We believe unbundling the business units will substantially improve our ability to maximize future returns to our shareholders. Alumax, our aluminum company, will have the freedom, when it's spun off, to manage its own financial affairs and take on an entirely new look. Alumax already is adopting new price protection programs to give it greater revenue stability and is considering broader downstream business development options.
 "The merged Cyprus Amax Minerals Company will have the reserves, and the capabilities to develop them, to make it a strong presence in global mining," Born said.
 AMAX is a major producer of quality metals and energy. Its principal businesses are aluminum, coal, natural gas, gold, molybdenum and other metals.
 AMAX INC.
 Earnings Table
 (In millions except per share amounts)
 Three months ended Sept. 30 1993 1992(A)
 Sales $893.3 $959.0
 Earnings (Loss) from Operations (15.0) 14.4
 Loss before cumulative
 effect of accounting changes (60.7) (24.6)
 Cumulative effect of
 accounting changes --- ---
 Net loss (60.7) (24.6)
 Weighted Average Common
 Shares Outstanding 88.3 87.4
 Net Loss per Primary
 Common Share
 Before cumulative effect
 of accounting changes $(.77) $ (.29)
 Cumulative effect of
 accounting changes --- ---
 Primary loss per
 Common Share $(.77) $(.29)
 Nine months ended Sept. 30 1993 1992(A)
 Sales $2,622.5 $2,752.4
 Earnings (Loss) from Operations (79.1) 5.6
 Loss before cumulative
 effect of accounting changes (170.6) (34.2)
 Cumulative effect of
 accounting changes --- (99.0)
 Net loss (170.6) (133.2)
 Weighted Average Common
 Shares Outstanding 87.9 87.2
 Net Loss per Primary
 Common Share
 Before cumulative effect
 of accounting changes $(2.18) $ (.40)
 Cumulative effect of
 accounting changes --- $(1.13)
 Primary loss per
 Common Share $(2.18) $(1.53)
 (A) -- Restated
 -0- 10/21/93
 /CONTACT: Jerry Cooper of AMAX, 212-856-5982/
 (AMX)


CO: AMAX Inc. ST: New York IN: MNG SU: ERN

TS -- NY097 -- 5392 10/21/93 15:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:778
Previous Article:BANCTEXAS GROUP INC. ANNOUNCES THIRD QUARTER RESULTS
Next Article:NAVISTAR COMPLETES STOCK OFFERING, PRE-FUNDS RETIREE HEALTH TRUST; PAYMENT OF DIVIDEND ARREARAGE ON SERIES G PREFERRED STOCK APPROVED
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters