ASARCO REPORTS SECOND QUARTER RESULTS.NEW YORK--July 24, 1995--(BUSINESS WIRE)--ASARCO Incorporated (NYSE NYSE See: New York Stock Exchange :AR) today reported net income of $56.4 million, or $1.34 per common share, for the second quarter ended June June: see month. 30, 1995 compared with net income of $5.4 million, or 13 cents per common share, for the second quarter of 1994. Results for the second quarter of 1995 reflect Asarco's 63% ownership of 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 ). As previously reported, Asarco increased its ownership interest in SPCC in April 1995 to 63% from 52.3%. Asarco is consolidating SPCC in its financial statements effective with the beginning of 1995. The Company had previously accounted for its interest in SPCC under the equity method of accounting. Sales of products and services were $787.5 million in the second quarter of 1995 versus $487.8 million for the same period of 1994. Had SPCC been 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: in Asarco's financial statements in the second quarter of 1994, sales of products and services would have been $631.0 million. For the six months ended June 30, 1995, Asarco reported net income of $122.1 million or $2.90 per share, compared with net income of $32.0 million, or 76 cents a share for the comparable period of 1994. Sales of products and services for the first six months of 1995 were $1,578.5 million compared with $930.7 million for 1994. Had SPCC been consolidated in Asarco's financial statements in the first six months of 1994, sales of products and services would have been $1,210.7 million. The average prices for all of Asarco's major metals increased in the second quarter of 1995 compared to the same period of 1994. The average price for copper on the 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 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 second quarter of 1995 was $1.33 per pound compared to 99 cents in the second 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 was $1.31 compared to 97 cents for the year earlier period. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one half of Asarco's consolidated sales of copper are based on the COMEX price with the balance based on LME quotations. The average LME price for lead was 27 cents per pound compared to 22 cents in the second quarter of 1994. The average 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 was 47 cents per pound compared to 43 cents a year ago. The 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. price averaged $7.21 per pound in the second quarter of 1995 compared to $3.16 in the year earlier period. Gold averaged $388 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. in the second quarter of 1995 compared to $381 in the second quarter of 1994. The average price for silver was $5.48 an ounce compared to $5.38 in the second quarter of 1994. Consolidated mined The Consolidated Mine was a productive gold mine in Lumpkin County, Georgia, just east of Dahlonega. Like most of the area around Dahlonega, the placer mining on the land on which the mine is located probably started during the Georgia Gold Rush. copper production in the second quarter of 1995 totaled 138,800 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. . Asarco's beneficial interest in the consolidated production was 115,000 tons, an increase of 8,900 tons or 8.4% over the second quarter of 1994, reflecting the increase in ownership of SPCC and higher production 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. The accelerated development program begun at the Ray mine in 1994 was completed during the second quarter of 1995, four months earlier than the original schedule, which allowed the Company to restart To resume computer operation after a planned or unplanned termination. See boot, warm boot and checkpoint/restart. a portion of the previously curtailed Hayden Hay·den , Robert 1913-1980. American poet whose works, such as Heart-Shape in the Dust (1940), often explore the history and experiences of African Americans. mill at the Ray Complex. Production at Ray in the second quarter of 1995 increased nearly 20% over the year earlier period, which had been adversely affected by the residual Residual See:Residual value effects of the heavy rains in 1993. Announcing 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 said The improvement in Asarco's earnings in the second quarter of 1995 is a result of higher base metal prices, particularly copper, combined with improved operating results in all of the Company's major businesses. The Company's specialty chemical 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. business produced record quarterly profits in the second quarter of 1995. The improvement in earnings from the specialty chemical business resulted from the Company's cost reduction program and higher sales volumes. SPCC contributed $25.0 million to the Company's net earnings in the second quarter of 1995 compared to $12.4 million in 1994. SPCC mine production in the second quarter of 1995 was 64,400 tons of copper and 2.3 million pounds of molybdenum compared to 71,700 tons of copper and 1.8 million pounds of molybdenum in the second quarter of 1994. The decline in SPCC's copper production in the second quarter of 1995 was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower grade ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. at its Cuajone Mine. Demand for copper continues to be strong in all regions of the world, and consumption continues to exceed supply. We expect that the decline in copper inventories at all levels of the supply chain will support a continuation continuation - continuation passing style of the current favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions. 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, 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
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30 June 30
Historical Pro Historical Pro
1994 Forma 1994 Forma
1995 1994 1995 1994
Sales $787.5 $487.8 $631.0 $1,578.5 $930.7 $1,210.7 Earnings (loss) before taxes, equity earnings and minority 118.0 (13.4) 31.1 258.1 30.3 92.6 interests Taxes on income 37.0 (6.1) 10.3 80.4 14.9 39.3 (benefits) Earnings (loss) before equity earnings and minority 81.0 (7.3) 20.8 177.7 15.4 53.3 interests Equity earnings of nonconsolidated associated companies .3 12.9 .5 .7 16.9 .9 net of taxes Minority interest (24.9) (.2) (15.9) (56.3) (.3) (22.2) Net earnings $56.4 $ 5.4 $ 5.4 $122.1 $ 32.0 $ 32.0 Common shares outstanding (average) 42.2 41.8 41.8 42.2 41.8 41.8 Net earnings per share $1.34 $0.13 $ 0.13 $ 2.90 $0.76 $ $ 0.76 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. Effective April 1995 Asarco's ownership of SPCC increased to 63%.
ASARCO Incorporated
and Consolidated Subsidiaries
(In Millions)
Three Months Ended Six Months Ended
June 30 June 30
Historical Pro Historical Pro
1995 1994 Forma 1995 1994 Forma
1994 1994
Segment Sales
Metals $687.3 $401.0 $544.1 $1,387.4 $760.4 $1,040.3 Aggregates $12.6 $11.5 $11.5 $20.9 $18.1 $18.1 Specialty Chemicals $80.1 $68.1 $68.1 $153.9 $135.0 $135.0 Segment Operating Income Metals $127.7 $(5.7) $20.7 $273.2 ($13.3) $26.7 Aggregates $3.3 $2.7 $2.7 $4.0 $2.7 $2.7 Specialty Chemicals $6.9 $4.4 $4.4 $11.9 $7.7 $7.7
Includes equity earnings where operations are vertically
integrated.
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. Effective April 1995
Asarco's ownership of SPCC increased to 63%.
Average Metals Prices
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Copper (per pound - $1.33 $ .99 $ 1.35 $ .93 COMEX) Copper (per pound - $1.31 $ .97 $ 1.32 $ .91 LME) Lead (per pound - $.27 $ .22 $.28 $ .22 LME) Silver (per ounce) $5.48 $5.38 $ 5.09 $5.33 Gold (per ounce) $ 388 $ 381 $ 384 $ 383 Zinc (per pound - $.47 $ .43 $.48 $ .44 LME) Molybdenum (per pound - $7.21 $3.16 $10.49 $2.96 Metals Week Dealer Oxide)
Metal Production and Sales
Three Months Ended June 30
1995 1994
Mined Refined Sales Mined Refined Sales
Copper (tons)
Asarco 74,400 125,800 128,890 68,600 121,000 137,299
SPCC 64,400 54,300 75,602 71,700 16,000 77,361
Consolidated 138,800 180,100 204,492 140,300 137,000 214,660
Asarco 115,000 160,000 176,557 106,100 129,400 177,759
Beneficial Interest
Lead (tons)
Asarco 32,600 52,200 49,424 31,900 51,900 55,547
SPCC - - - - - -
Consolidated 32,600 52,200 49,424 31,900 51,900 55,547
Asarco 32,600 52,200 49,424 31,900 51,900 55,547
Beneficial Interest
Silver (000s
ounces)
Asarco 1,552 9,770 9,255 1,424 9,663 8,246
SPCC 771 590 613 708 149 639
Consolidated 2,323 10,360 9,868 2,132 9,812 8,885
Asarco 2,038 10,142 9,641 1,794 9,741 8,580
Beneficial Interest
Gold (ounces)
Asarco 1,300 76,700 42,200 1,700 64,000 37,100
SPCC - - - - - -
Consolidated 1,300 76,700 42,200 1,700 64,000 37,100
Asarco 1,300 76,700 42,200 1,700 64,000 37,100
Beneficial Interest
Zinc (tons)
Asarco 31,200 31,100
SPCC - -
Consolidated 31,200 31,100
Asarco 31,200 31,100
Beneficial Interest
Molybdenum (000s
pounds)
Asarco 1,220 814
SPCC 2,298 1,810
Consolidated 3,518 2,624
Asarco 2,669 1,761
Beneficial Interest
Note: SPCC presented at 100%.
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. Effective April 1995 Asarco's
ownership of SPCC increased to 63%.
Metal Production and Sales
Six Months Ended June 30
1995 1994
Mined Refined Sales Mined Refined Sales
Copper (tons)
Asarco 150,100 255,600 257,650 135,100 243,300 284,875
SPCC 128,600 107,300 139,200 138,400 16,000 162,379
Consolidated 278,700 362,900 396,850 273,500 259,300 447,254
Asarco 224,300 317,500 338,579 207,500 251,700 369,799
Beneficial Interest
Lead (tons)
Asarco 64,600 104,600 99,075 62,400 103,500 101,316
SPCC - - - - - -
Consolidated 64,600 104,600 99,075 62,400 103,500 101,316
Asarco 64,600 104,600 99,075 62,400 103,500 101,316
Beneficial Interest
Silver (000s ounces)
Asarco 3,014 19,370 18,831 3,076 19,136 15,730
SPCC 1,410 1,125 1,141 1,455 149 1,533
Consolidated 4,424 20,495 19,972 4,531 19,285 17,263
Asarco 3,834 20,022 19,493 3,837 19,214 16,532
Beneficial Interest
Gold (ounces)
Asarco 2,600 149,900 93,500 2,800 130,400 48,300
SPCC - - - - - -
Consolidated 2,600 149,900 93,500 2,800 130,400 48,300
Asarco 2,600 149,900 93,500 2,800 130,400 48,300
Beneficial Interest
Zinc (tons)
Asarco 63,700 62,300
SPCC - -
Consolidated 63,700 62,300
Asarco 63,700 62,300
Beneficial Interest
Molybdenum (000s
pounds)
Asarco 2,451 1,670
SPCC 3,915 3,330
Consolidated 6,366 5,000
Asarco 4,746 3,412
Beneficial Interest
Note: SPCC presented at 100%.
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. Effective April 1995 Asarco's
ownership of SPCC increased to 63%.
ASARCO Incorporated and Subsidiaries
CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
3 Months Ended 6 Months Ended
June 30, June 30,
1995 1994 1995 1994
(in thousands) (in thousands)
Sales of products and services $787,464 $487,756 $1,578,471 $930,737 Operating costs and expenses: Cost of products and services 580,571 440,465 1,150,657 848,174 Selling, administrative and other 30,918 19,638 63,353 39,380 Provision (recovery) for bad debts 491 696 1,065 (2,734) Depreciation and depletion 30,425 21,481 62,056 42,331 Research and exploration 7,656 4,460 12,766 8,334 Total operating costs and expenses 650,061 486,740 1,289,897 935,485 Operating income (loss) 137,403 1,016 288,574 (4,748) Interest expense (24,424) (14,730) (43,327) (29,001) Other income 5,077 267 12,896 5,511 Gain on sale of Asarco Australia Ltd. - - - 58,512 Earnings before taxes on income, minority interests and equity 118,056 (13,447) 258,143 30,274 earnings Taxes on income (benefit) 37,034 (6,137) 80,411 14,951 Minority interests in net earnings of consolidated subsidiaries (24,935) (181) (56,304) (302) Equity in earnings of nonconsolidated associated companies, net of taxes of $243 and $293 in 1995; $1,194 and $1,680 in 1994 323 12,853 694 16,947 Net earnings $ 56,410 $5,362 $ 122,122 $31,968 Per share amounts: Net earnings (a) $ 1.34 $ 0.13 $ 2.90 $ 0.76 Cash dividends $ 0.20 $ 0.10 $ 0.30 $ 0.20 Weighted average number of shares outstanding 42,212 41,829 42,183 41,800 (a) The effect on the calculation of net earnings per common share of the Company's Common Stock equivalents (shares under option) was insignificant.
ASARCO Incorporated
and Subsidiaries
CONSOLIDATED BALANCE SHEET
(unaudited)
June 30, December 31,
1995 1994
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 210,523 $ 18,321
Marketable securities 16,927 -
Accounts and notes receivable, net 443,768 383,724
Inventories 430,940 299,148
Other assets 58,592 46,124
Total current assets 1,160,750 747,317
Investments:
Cost and available-for-sale 656,581 751,888
Equity 71,678 391,489
Property 4,059,363 2,509,072
Accumulated depreciation and depletion (2,064,620) (1,203,573)
Intangible assets 47,642 48,356
Other assets 76,088 46,476
Total Assets $4,007,482 $ 3,291,025
LIABILITIES
Current liabilities:
Bank loans $ 20,428 $ 5,125
Current portion of long-term debt 30,436 13,330
Accounts payable 311,033 296,983
Salaries and wages 36,044 20,159
Taxes on income 76,582 43,152
Reserve for closed plant and
environmental matters 42,624 55,946
Other liabilities 48,796 30,838
Total current liabilities 565,943 465,533
Long-term debt 1,135,706 914,601
Deferred income taxes 145,896 156,450
Reserve for closed plant and environmental
matters 49,206 66,458
Postretirement benefit obligations other
than pensions 93,837 95,186
Other liabilities and reserves 74,147 72,967
Total non-current liabilities 1,498,792 1,305,662
MINORITY INTERESTS 366,145 2,443
COMMON STOCKHOLDERS' EQUITY
Common stock (a) 581,250 572,591
Unrealized gain on securities reported at
fair value 28,160 91,627
Retained earnings 967,192 853,169
Total Common Stockholders' Equity 1,576,602 1,517,387
Total Liabilities, Minority Interests and
Common Stockholders Equity $4,007,482 $ 3,291,025
(a) Common shares: authorized 80,000;
outstanding 42,248 42,102
ASARCO Incorporated
and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
3 Months Ended 6 Months Ended
June 30, June 30,
1995 1994 1995 1994
(in thousands) (in thousands)
OPERATING ACTIVITIES
Net earnings $56,410 $ 5,362 $122,122 $31,968
Adjustments to reconcile net
earnings to net cash provided from
operating activities:
Depreciation and depletion 30,425 21,796 62,056 42,970
Deferred income taxes 10,112 (6,693) 22,163 13,666
Treasury stock used for employee
benefits 1,223 1,151 2,831 2,442
Undistributed equity (earnings) losses 84 (12,062) 406 (14,127)
Net gain on sale of investments
and property (1,301) (170) (1,753) (59,289)
Increase (decrease) in reserve
for closed plant and
environmental matters (8,039) (11,788) (30,574) (11,309)
Minority interests 24,935 181 56,304 302
Cash provided from (used for)
operating assets and liabilities,
net of the consolidation of SPCC:
Accounts and notes receivable 33,714 (75,352) 36,407 (76,096)
Inventories (31,784) (20,828) (16,306) (23,488)
Accounts payable and accrued
liabilities 5,124 85,106 (31,674) 92,300
Other operating liabilities
and reserves 2,193 (7,199) (14,888) (4,045)
Other operating assets (5,534) (4,931) (10,542) (6,406)
Foreign currency transaction
(gains) losses 977 31 (1,279) 2,307
Net cash provided from (used for)
operating activities 118,539 (25,396) 195,273 (8,805)
INVESTING ACTIVITIES Capital expenditures (110,035) (13,636)(186,382) (23,932) Sale of securities, investments and property 20,494 212 62,565 79,703 Release of restricted cash 58,954 - 58,273 - Sale of available-for-sale securities 2,914 54,502 9,144 62,674 Purchase of available-for-sale securities (3,644) (55,144) (10,352) (63,200) Purchase of investments (938) (215) (36,010) (215) Acquisition of additional investment in SPCC (116,444) - (116,444) - Cash effect of the consolidation of SPCC - - 93,348 - Net cash provided from (used for) investing activities (148,699) (14,281) (125,858) 55,030 FINANCING ACTIVITIES Debt incurred 154,733 45,754 164,723 45,879 Debt retired (12,277) (1,573) (29,167) (80,361) Net treasury stock transactions 471 460 235 482 Dividends paid (8,443) (4,183) (12,659) (8,361) Net cash provided from (used for) financing activities 134,484 40,458 123,132 (42,361) Effect of exchange rate changes on cash (480) (252) (345) (331) Increase (decrease) in cash and cash equivalents 103,844 529 192,202 3,533 Cash and cash equivalents at beginning of period 106,679 15,504 18,321 12,500 Cash and cash equivalents at end of period $210,523 $16,033 $210,523 $16,033 CONTACT: Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Cooper Cooper may refer to:
212-510-1810 |
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