ASARCO REPORTS FIRST QUARTER RESULTS.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y.--(BUSINESS WIRE)--April 24, 1995--ASARCO Incorporated (NYSE NYSE See: New York Stock Exchange :AR) today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net earnings of $65.7 million, or $1.56 per common share, for the first quarter ended March 31, 1995, compared with net earnings of $26.6 million, or $0.64 per common share, for the first quarter of 1994. Results for the first quarter of 1994 included a $31.9 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain on the sale of Asarco's remaining interest in Asarco Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Limited, and a $2.6 million after-tax gain related to the recovery of a bad debt previously written off. On April 5, 1995, Asarco acquired an additional 10.7% interest in Southern Peru Copper Corporation (SPCC SPCC abbr. Society for the Prevention of Cruelty to Children SPCC (US) n abbr (= Society for the Prevention of Cruelty to Children) → Kinderschutzbund m ) for $116.4 million, increasing its ownership from 52.3% to 63%. As a result of the acquisition, Asarco is consolidating the financial statements of SPCC in its financial statements, effective with the first quarter of 1995. Sales of products and services were $791.0 million in the first quarter of 1995, compared with $443.0 million in the same period of 1994. Had SPCC been consolidated in Asarco's financial statements in the first quarter of 1994, sales of products and services would have been $579.7 million. The average prices for the base metals produced by Asarco increased in the first quarter of 1995 compared with 1994, while precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. prices declined from the year- earlier period. The average price for copper on the New York Commodity Exchange (COMEX COMEX A division of the New York Mercantile Exchange (NYMEX). Formerly known as the Commodity Exchange, COMEX is the leading US market for metals futures and options trading. COMEX See New York Mercantile Exchange (NYM). ) in the first quarter of 1995 was $1.38 per pound, 51 cents more than in the first quarter of 1994. The average London Metal Exchange London Metal Exchange (LME) A market for trading base metals, where traded options contracts are available against the underlying futures contract. (LME See London Metal Exchange. LME See London Metal Exchange (LME). ) copper price for the quarter increased 48 cents to $1.33 from 85 cents in the year-earlier quarter. Approximately 55% of Asarco's consolidated copper sales are based on the Comex price with the balance based on LME quotations. The LME average price for lead in the quarter increased 6 cents to 28 cents per pound. The average LME price for zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. was 49 cents per pound, 5 cents more than the first quarter 1994 price. Silver fell 58 cents to $4.70 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. , while gold decreased $5 to $379 per ounce. Prices for molybdenum molybdenum (məlĭb`dənəm) [Gr.,=leadlike], metallic chemical element; symbol Mo; at. no. 42; at. wt. 95.94; m.p. about 2,617°C;; b.p. about 4,612°C;; sp. gr. 10.22 at 20°C;; valence +2, +3, +4, +5, or +6. increased significantly and averaged $13.77 per pound in the 1995 quarter compared with $2.75 per pound in the first quarter 1994. Commenting on the Company's results, Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a de J. Osborne Os·borne , John James 1929-1994. British playwright and member of the Angry Young Men who is best known for his first play, Look Back in Anger (1956). Noun 1. , Chairman of the Board of Asarco, said, "Asarco's earnings improved in the first quarter of 1995 due to higher base metal prices, lower costs and operating improvements in all of our major businesses. Asarco's first quarter earnings also benefited substantially from the Company's interest in SPCC." Asarco produced 139,900 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. of mined copper in the first quarter 1995 including SPCC copper production. Asarco's beneficial interest in the total production was 109,300 tons, an increase of 7,900 tons, or 7.8%, over the year ago period. The increase was principally due to higher production rates at the Company's Ray, Arizona Ray is a ghost town in Pinal County, Arizona, United States. There is a huge copper mine there. The town of Kearny, Arizona was founded by the Kennecott Mining Company in 1954 as a planned community to accommodate the populations of Ray, Barcelona and Sonora, which were about to be copper mine. Commenting on 1995 copper production, Osborne said, "The accelerated development program begun in mid- mid- pref. Middle: midbrain. 1994 at the Ray mine, originally scheduled to take 15 months, will be completed three months earlier than planned and full production at Ray should be restored by July July: see month. 1, 1995. Asarco implemented the program to restore operating flexibility and production capacity lost as a consequence of water accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. in 1992 and early 1993 from unusually heavy rains. During the development program production at one of the facility's two mills was temporarily curtailed and mining equipment has been shifted to development activities. SPCC contributed $21.6 million to Asarco's net earnings in the first quarter reflecting higher copper and molybdenum prices. SPCC mined 64,200 tons of copper and 1.6 million pounds of molybdenum in the first quarter of 1995 compared with 66,700 tons of copper and 1.5 million pounds of molybdenum in the year earlier period. "Operations at Asarco's and SPCC's properties are continuing to improve. When we return to full production at our Ray mine in July, our costs will be reduced further as this increased mine production becomes available for sale in the fourth quarter," Osborne said. "The outlook for metal markets is good and supply and demand fundamentals appear to be favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. for at least the next two years." ASARCO Incorporated, headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is one of the world's leading integrated producers of nonferrous non·fer·rous adj. 1. Not composed of or containing iron. 2. Of or relating to metals other than iron. nonferrous Adjective 1. metals, principally copper, lead, zinc, silver molybdenum and gold. Asarco also produces specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. , minerals and other industrial products and provides environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, . -0-
ASARCO Incorporated
and Consolidated Subsidiaries
First Quarter Results
(In millions, except per share data)
Three Months
Ended
March 31
Historical Pro Forma
1995 1994 1994
Sales $791.0 $443.0 $579.7 Earnings before taxes, 140.1 43.6 61.5 equity earnings and minority interest Taxes on income 43.4 21.1 29.0 Earnings before equity 96.7 22.5 32.5 earnings and minority interest Equity earnings of .4 4.1 .4 nonconsolidated associated companies, net of taxes Minority interest (31.4) - (6.3) Net earnings $65.7 $26.6 $26.6 Common shares outstanding (average) 42.2 41.8 41.8
Net earnings per share
$1.56 $.64 $.64
-0- Note: Pro Forma 1994 assumes that Asarco consolidated SPCC effective January 1, 1994 based on Asarco's 52.3% ownership of SPCC and is presented for comparison purposes. -0-
ASARCO Incorporated
and Consolidated Subsidiaries
First Quarter Results
(In millions, except per share data)
Three Months Ended
March 31
Historical Pro Forma
1995 1994 1994
Segment Sales
Metals $700.1 $359.6 $496.2 Aggregates $ 8.3 $ 6.6 $ 6.6 Specialty Chemicals $ 73.8 $ 66.8 $ 66.8 Segment Operating Income Metals $145.5 $ (8.8) $ 6.0 Aggregates $ 0.7 $ 0.0 $ 0.0 Specialty Chemicals (a) $ 5.0 $ 3.3 $ 3.3 (a) Includes equity earnings for specialty chemical company investments vertically integrated with Company operations. Note: Pro Forma 1994 assumes that Asarco consolidated SPCC effective January 1, 1994 based on Asarco's 52.3% ownership of SPCC and is presented for comparison purposes. -0-
Three Months Ended March 31
Average Metals Prices
1995 1994
Copper (per pound - $ 1.38 $ .87 COMEX) Copper (per pound - $ 1.33 $ .85 LME) Lead (per pound - $ .28 $ .22 LME) Silver (per ounce) $ 4.70 $ 5.28 Gold (per ounce) $ 379 $ 384 Zinc (per pound - $ .49 $ .44 LME) Molybdenum (per $ 13.77 $ 2.75 pound -Metals Week Dealer Oxide) -0-
Metal Production and Sales
Three Months Ended March 31
1995 1994
Mined Refined Sales Mined Refined Sales
Copper (tons)
Asarco 75,700 129,800 128,760 66,500 122,300 147,576
SPCC 64,200 53,000 63,598 66,700 - 85,018
Consolidated 139,900 182,800 192,358 133,200 122,300 232,594
Asarco 109,300 157,500 162,022 101,400 122,300 192,040 Beneficial Interest Lead (tons) Asarco 32,000 52,400 49,651 30,500 51,600 45,769 SPCC - - - - - - Consolidated 32,000 52,400 49,651 30,500 51,600 45,769 Asarco 32,000 52,400 49,651 30,500 51,600 45,769 Beneficial Interest Silver (000s ounces) Asarco 1,335 9,600 9,576 1,652 9,473 7,484 SPCC 639 535 528 747 - 894 Consolidated 1,974 10,135 10,104 2,399 9,473 8,378 Asarco 1,669 9,880 9,852 2,043 9,473 7,952 Beneficial Interest Gold (ounces) Asarco 1,300 73,200 51,300 1,100 66,400 11,197 SPCC - - - - - - Consolidated 1,300 73,200 51,300 1,100 66,400 11,197 Asarco 1,300 73,200 51,300 1,100 66,400 11,197 Beneficial Interest Zinc (tons) Asarco 32,500 31,200 SPCC - - Consolidated 32,500 31,200 Asarco 32,500 31,200 Beneficial Interest Molybdenum (000s pounds) Asarco 1,264 856 SPCC 1,617 1,520 Consolidated 2,881 2,376 Asarco 2,110 1,651 Beneficial Interest Note: SPCC presented at 100%. Asarco's interest in SPCC 52.3% Consolidated and Asarco Beneficial Interest amounts shown for 1994 are pro forma and assume that Asarco consolidated SPCC effective January 1, 1994 based on Asarco's 52.3% ownership of SPCC and is presented for comparison purposes. -0- CONTACT: Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Cooper 212/510-1810 |
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