ASARCO REPORTS FOURTH-QUARTER AND FULL-YEAR RESULTS.NEW YORK--(BUSINESS WIRE)-- January 25, 1995--ASARCO Incorporated (NYSE NYSE See: New York Stock Exchange :AR) today reported net earnings of $48.2 million, or $1.15 per share, for the fourth quarter of 1994, compared with $73.7 million, or $1.78 per share, for the fourth quarter of 1993. Results for the fourth quarter of 1993 included recognition of $18.2 million related to previously unrecognized earnings of the Company's investments in Peru and $86.3 million, or $2.08 per share, for the cumulative effect of a change in accounting principle resulting from Southern Peru Copper Corporation's adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 109, Accounting for Income Taxes. Fourth quarter 1993 earnings also included an after-tax charge of $13.0 million related to the valuation of certain inventories and additions to reserves for closed plants and environmental matters. Sales of products and services were $588.1 million in the fourth quarter of 1994, compared with $435.5 million in the same period of 1993. For the year ended December 31, 1994, Asarco reported net earnings of $64.0 million, or $1.53 per share, compared with $15.6 million, or 38 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the full year of 1993. The 1994 full year results include an after-tax gain on the sale of the Company's interest in Asarco Australia Limited of $31.9 million, a $30.7 million after- tax charge to add to the Company's environmental reserves and a $2.6 million after-tax gain related to the recovery of a bad debt previously written off. Results for the full year 1993, in addition to the fourth quarter items described above, included an after-tax gain of $7.6 million related to the sale of a 9.9% interest in Asarco Australia and gain on the issuance of stock by Asarco Australia, a $2.8 million charge to reflect an increase in income tax rates and an after-tax gain of $5.9 million from the reduction of LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack inventories. Sales of products and services for the full year of 1994 were $2.0 billion, compared with $l.7 billion in 1993. In the fourth quarter 1994, the Comex average price for copper increased 53 cents per pound to $1.29, compared with the same quarter in 1993. The 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). ) price for lead increased 10 cents per pound in the same period to 29 cents, and silver increased 54 cents per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. to $5.14. The LME 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. price rose eight cents per pound to 50 cents. For the full year of 1994, the Comex average price for copper increased 22 cents per pound compared with full year 1993 to $1.07. The LME average price for lead in 1994 increased six cents per pound to 25 cents. Silver increased 99 cents per ounce to $5.29. The LME zinc price increased one cent per pound to 45 cents. Commenting on the Company's results, Richard de J. Osborne, chairman of the board of Asarco, said, "Higher metal prices and reduced operating costs operating costs npl → gastos mpl operacionales contributed to the improved results for the fourth quarter of 1994. The Company's earnings are benefiting from improved operations at the Company's Ray copper mine and its Amarillo copper refinery and from cost reduction programs throughout the Company." "At the Ray mine, the Company has completed the first six months of a 15-month accelerated development program which is scheduled for completion by the end of the third quarter of 1995. The Amarillo refinery operated at higher production rates in 1994. Also, the El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. , Texas copper smelter operated at 98% of design capacity in the fourth quarter of 1994, although costs still were higher than had been planned." 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 ), in which Asarco holds a 52.3% interest, contributed $15.5 million after tax to the Company's earnings in the fourth quarter and $44.9 million after tax for the full year. "SPCC," Osborne said, "has substantially reduced its costs in recent years and is an important contributor of both earnings and cash flow to Asarco." During 1994, Asarco made significant progress in its program to increase the transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. and liquidity of its investments in major mining companies outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . "SPCC filed a registration statement in November for an initial public offering of its shares and three of SPCC's shareholders have announced plans to sell a portion of their shares representing a total 20% interest in SPCC. Asarco plans to retain its 52.3% interest in SPCC," he said. Asarco also completed the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its investment in a privately-held Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum company to a 23.6 % interest in publicly-traded Grupo Mexico in August 1994. Osborne said, "Asarco now holds a stake in one of the largest publicly-traded mining companies in Mexico. The reorganization paves the way for Grupo Mexico's entry into the international equity markets, improving liquidity for all shareholders, and provides a basis for Grupo Mexico's continued growth." In addition, Osborne said, "A 24.7% interest in Asarco held by MIM MIM Metal Injection Molding MIM Mendelian Inheritance in Man MIM Mobile Instant-Messaging MIM Man in the Middle MIM Multilateral Initiative on Malaria MIM Metal-Insulator-Metal MIM Master of International Management MIM Made in Mexico Holdings Ltd. of Australia was sold in a broadly- distributed international offering in November. Asarco's 15.4% interest in MIM is a valuable asset and the Company will work with the MIM board of directors in establishing the future direction and leadership of the company." In January 1995, Asarco nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. two directors to the MIM board. Willard C. Butcher Willard Carlisle Butcher (October 25, 1926 in Bronxville, New York) graduated from Brown University Phi Beta Kappa in 1947. David Rockefeller said about him in «Memoirs»: "It's a pleasure to work with Bill". Vice President of the Chase Manhattan Bank. and Richard de J. Osborne have been elected as directors of MIM and James C. Cotting and James W. Kinnear will serve as alternate directors An alternate director is a person who is appointed to attend a board meeting on behalf of the director of a company where the principle director would be otherwise unable to attend. . All four are directors of Asarco. Commenting on future prospects for the Company, Osborne said, "We look forward to 1995 with a great deal of confidence. The markets for copper and our other metal products have strong supply and demand fundamentals and metal prices reflect this strength in the markets. The Company has completed its major, multi-year copper expansion plan and now has the programs in place to achieve its copper production and cost objectives. We have increased the value and liquidity of our investments in associated companies associated company associate n → Partnerfirma f associated company n → società collegata which now represent substantial value to our shareholders." 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 and silver. 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, . Asarco had 1994 sales of $2.0 billion. -0-
ASARCO Incorporated
and Consolidated Subsidiaries
Fourth Quarter and Full-Year Results
(In millions, except per share data)
Three Months Ended Year Ended
December 31 December 31
1994 1993 1994 1993
Sales $588.1 $435.5 $2,031.8 $1,736.4 Earnings (loss) 41.1 (59.3) 25.8 (134.6) before taxes and equity earnings Taxes on income 9.7 (19.8) 9.4 (36.5) (benefit) Earnings (loss) 31.4 (39.5) 16.4 (98.1) before equity earnings Equity earnings of 16.8 0.5 47.6 1.0 non consolidated associated companies net of taxes Net earnings $48.2 $73.7 $64.0 $15.6 Common shares 42.1 41.7 41.9 41.6 outstanding (average) Net earnings per $1.15 $1.78 $1.53 $.38 share
ASARCO Incorporated
and Consolidated Subsidiaries
Fourth Quarter and Full-Year Results
(In millions, except per share data)
Three Months Ended Year Ended
December 31 December 31
1994 1993 1994 1993
Segment Sales
Metals $492.8 $332.7 $1,675.0 $1,338.4 Minerals $12.5 $9.4 $43.3 $37.3 Specialty Chemicals $74.0 $65.9 $277.6 $251.4
Segment Operating Income
Metals (a)
$ $47.6 $(35.3) $(8.7) $(96.6)
Minerals
$ $2.4 $1.8 $7.2 $6.9
Specialty Chemicals
$ (b) $3.9 $2.2 $15.2 $5.4
(a) Includes provision for environmental matters (b) Includes equity earnings for specialty chemical company investments vertically integrated with Company operations.
Average Metals Prices
Three Months Ended Year Ended
December 31 December 31
1994 1993 1994 1993
Copper (per pound - $ 1.29$ 0.757 $ 1.071 $ 0.853
COMEX)
Lead (per pound - $ 0.294 $ 0.188 $ 0.249 $ 0.184 LME) Silver (per ounce) $ 5.14 $ 4.60 $ 5.29 $ 4.30 Gold (per ounce) $ 384.48 $ 373.77 $ 384.01 $ 359.77 Zinc (per pound - $ 0.502 $ 0.426 $ 0.452 $ 0.436 LME) Molybdenum (per $ 8.57 $ 2.60 $ 4.50 $ 2.28 pound)
Metal Production (Beneficial) and Sales
Copper (tons)
Mine 74,400 78,100 286,600 307,800
Refined 126,100 124,300 492,600 496,700
Sales 132,700 146,900 539,400 528,100
Lead (tons)
Mine 32,300 34,700 127,800 131,100
Refined 50,000 51,200 205,800 197,700
Sales 47,500 54,000 198,500 211,500
Silver (000s ounces)
Mine 1,528 1,616 6,143 6,252
Refined 8,067 9,140 36,126 35,665
Sales 8,468 8,643 33,320 32,754
Gold (ounces)
Mine 1,800 2,100 6,200 39,900
Refined 65,700 63,500 265,200 226,800
Sales 45,200 33,400 141,100 162,300
Zinc (tons)
Mine Production 28,800 26,600 120,500 102,300
Molybdenum (000s
pounds)
Mine Production 1,176 936 3,790 3,568
CONTACT: Donald M. Noyes, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. ASARCO Incorporated, 212/510-1813 |
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