ASARCO reports third quarter results.(NYSE NYSE See: New York Stock Exchange :AR) today reported net income of $58.3 million, or $1.38 per common share, for the third quarter ended September September: see month. 30, 1995, compared with a net loss of $16.1 million, or 39 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 third quarter of 1994. Results for the third 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 ). In April of this year Asarco increased its ownership interest in SPCC to 63% from 52.3%. Asarco is consolidating SPCC in its financial statements effective January January: see month. 1, 1995. The Company had previously accounted for its interest in SPCC under the equity method of accounting. Results for the third quarter of 1994 included a $30.7 million after tax provision to add to the Company's reserve for environmental costs. Excluding this charge, earnings for the third quarter of 1994 would have been $14.6 million or 35 cents per share. Sales of products and services were $819.7 million in the third quarter of 1995 compared to $513.0 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 third quarter of 1994, sales of products and services would have been $693.3 million. For the nine months ended September 30, 1995, Asarco reported net income of $180.4 million, or $4.27 per share, compared with net income of $15.8 million or 38 cents per share for the comparable period of 1994. Sales of products and services for the first nine months of 1995 were $2,398.2 million compared with $1,443.7 million in 1994. Had SPCC been consolidated in Asarco's financial statements in the first nine months of 1994, sales of products and services would have been $1,904.0 million. 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 third quarter of 1995 totaled 146,300 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 113,200 tons compared to 105,600 tons in the third quarter of 1994. The increase in Asarco's beneficial interest in consolidated copper production was principally related to its increased ownership of SPCC and to the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of full operations of the 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, 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 mine. The average prices for copper, lead, 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. and 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 in the third quarter of 1995 compared with the prior year period. 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). ) for the third quarter of 1995 was $1.36 compared to $1.14 in the third quarter of 1994. On 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). ) in the third quarter of 1995, the average copper price was $1.37 compared to $1.11 in the prior year period. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one half of the Company's consolidated copper sales are based on the COMEX price with the balance based on LME quotations. The average price for lead on the LME was 28 cents per pound in the third quarter of 1995 compared to 27 cents in 1994. The average zinc price was 46 cents per pound compared to 44 cents in the same period of 1994. The average price for molybdenum in the third quarter of 1995 was $4.37 per pound compared to $3.52 a year ago. Gold averaged $384 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. compared to $386 per ounce in the third quarter of 1994. The average price for silver in the third quarter of 1995 was $5.33 compared to $5.34 in the prior year. 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 for the third quarter of 1995 reflect the higher copper price along with lower costs and an increase in sales of copper mined by the Company as compared to the third quarter of 1994. In addition, the Company benefited from its increased ownership of SPCC as well as improved earnings from the Company's 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. business. SPCC contributed $36.2 million to the Company's net earnings in the third quarter of 1995 compared to $13.4 million in 1994. SPCC mined copper production increased to 69,100 tons in the third quarter of 1995 from 66,000 tons in the prior year. Molybdenum mined by SPCC in the third quarter increased over 43% from the prior year period to 1.9 million pounds. On October October: see month. 5, SPCC announced that it had filed a registration statement with the Securities and Exchange Commission relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a proposed exchange of its common stock for any and all of the outstanding Labor Shares of SPCC's Peruvian Branch. These Labor Shares, which are accounted for as a minority interest by SPCC, are currently traded on the Lima Stock Exchange Lima Stock Exchange Peru's major securities market. . SPCC intends to list its common stock on the New York and Lima stock exchanges. Assuming all Labor Shares are exchanged for common stock, the Company will own 52.2% of the outstanding common stock of SPCC which represents no change in its current economic interest. The Company's specialty chemicals business continued to produce earnings at record levels in the third quarter of 1995. The integration of acquisitions and subsequent 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 the business over the last several years has been completed and when coupled with generally good economic conditions, the specialty chemicals business is now producing a dependable source of earnings for the Company. During the third quarter of 1995, Asarco sold its stock in Corporacion Minera Minera (Welsh: Mwynglawdd) is a small village in the county borough of Wrexham in north-east Wales. It borders Coedpoeth to the east and Bwlchgwyn to the west. Nor Peru which owned and operated the Quiruvilca mine in the northern part of Peru. The Company also sold its Lone Star Lone Star (or Lonestar) may refer to:
See also: Dispose its non core operations. Third quarter 1995 results reflect a pretax loss pretax loss A loss reported before tax benefits are considered. of $4 million with respect to these sales. We continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the markets for the Company's major metals, particularly copper. Demand continues to be strong worldwide and copper inventories remain at relatively low levels. 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 and aggregates. -0-
ASARCO Incorporated
and Consolidated Subsidiaries
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
Historical Pro Historical Pro
Forma Forma
1995 1994 1994 1995 1994 1994
Sales $819.7 $513.0 $693.3 $2,398.2 $1,443.7 $1,904.0 Earnings (loss) before taxes, equity earnings and minority interests 139.9 (45.1) 3.3 398.0 (14.8) 95.8 Taxes on income (benefits) 46.6 (15.3) .6 127.0 (.3) 39.9 Earnings (loss) before equity earnings and minority interests 93.3 (29.8) 2.7 271.0 (14.5) 55.9 Equity earnings of nonconsolidated associated companies .9 13.9 .5 1.6 30.8 1.4 net of taxes Minority interests (35.9) (.2) (19.3) (92.2) (.5) (41.5) Net earnings (loss) $58.3 $(16.1) $(16.1) $180.4 $ 15.8 $ 15.8 Common shares outstanding (average) 42.4 41.9 41.9 42.3 41.8 41.8 Net earnings (loss) per share $1.38 $(0.39) $(0.39) $ 4.27 $0.38 $0.38 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%. -0-
ASARCO Incorporated
and Consolidated Subsidiaries
(In Millions)
Three Months Ended Nine Months Ended
September 30 September 30
Historical Pro Historical Pro
1995 Forma 1995 Forma
1994 1994 1994 1994
Segment Sales
Metals $725.5 $421.8 $602.1 $2,112.9 $1,182.2 $1,642.4 Aggregates $12.8 $12.7 $12.7 $33.7 $30.8 $30.8 Specialty Chemicals $74.4 $68.6 $68.6 $228.3 $203.6 $203.6 Segment Operating Income Metals $158.0 ($43.0) $5.4 $431.2 ($56.3) $32.1 Aggregates $3.1 $2.1 $2.1 $7.1 $4.8 $4.8 Specialty Chemicals $6.0 $3.6 $3.6 $17.9 $11.3 $11.3 Includes equity earnings for operations which 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 NineMonths Ended
September 30 September 30
1995 1994 1995 1994
Copper (per pound COMEX) - $1.36 $1.14 $1.36 $1.00 Copper (per pound LME) - $1.37 $1.11 $1.34 $0.98 Lead (per pound LME) - $0.28 $0.27 $0.28 $0.23 Silver (per ounce H&H) - $5.33 $5.34 $5.17 $5.33 Gold (per ounce - London Final) $384 $386 $384 $384 Zinc (per pound LME) - $0.46 $0.44 $0.47 $0.44 Molybdenum (per pound - Metals Week Dealer Oxide) $4.37 $3.52 $8.45 $3.14 -0-
Metal Production and Sales
Three Months Ended September 30
1995 1994
Mined Refined Sales Mined Refined Sales
Copper (tons) Asarco 77,200 130,300 120,000 77,100 123,200 121,800 SPCC 69,100 54,800 94,900 66,000 51,300 80,500 Consolidated 146,300 185,100 214,900 143,100 174,500 202,300 Asarco Benficial Interest 113,200 158,900 169,500 105,600 145,300 156,500 Lead (tons) Asarco 31,400 51,200 52,200 33,100 52,300 49,700 SPCC - - - - - - Consolidated 31,400 51,200 52,200 33,100 52,300 49,700 Asarco Beneficial Interest 31,400 51,200 52,200 33,100 52,300 49,700 Silver (000s ounces) Asarco 1,476 8,128 9,583 1,539 8,923 9,121 SPCC 757 689 725 822 476 853 Consolidated 2,233 8,817 10,308 2,361 9,399 9,974 Asarco Beneficial Interest 1,871 8,487 9,961 1,894 9,128 9,489 Gold (ounces) Asarco 1,300 61,200 36,800 1,600 69,100 47,600 SPCC - - - - - - Consolidated 1,300 61,200 36,800 1,600 69,100 47,600 Asarco Beneficial Interest 1,300 61,200 36,800 1,600 69,100 47,600 Zinc (tons) Asarco 31,100 29,400 SPCC - - Consolidated 31,100 29,400 Asarco Beneficial Interest 31,100 29,400 Molybdenum (000s pounds) Asarco 1,476 943 SPCC 1,921 1,340 Consolidated 3,397 2,283 Asarco Beneficial Interest 2,478 1,522 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% equity ownership. The minority interest in SPCC represented by Labor Shares in its Peruvian Branch results in Asarco having a beneficial interest in SPCC of 43.2%. Effective April 1995 Asarco's equity ownership of SPCC increased to 63% and its beneficial interest increased to 52.1%. -0-
Metal Production and Sales
Nine Months Ended September 30
1995 1994
Mined Refined Sales Mined Refined Sales
Copper (tons)
Asarco 227,300 385,900 377,700 212,200 366,500 406,600
SPCC 197,700 162,100 234,400 204,400 67,300 242,900
Consolidated 425,000 548,000 612,100 416,600 433,800 649,500
Asarco Beneficial Interest 324,600 465,700 494,200 300,500 395,500 511,400 Lead (tons) Asarco 96,000 155,800 151,300 95,500 155,800 151,000 SPCC - - - - - - Consolidated 96,000 155,800 151,300 95,500 155,800 151,000 Asarco Beneficial Interest 96,000 155,800 151,300 95,500 155,800 151,000 Silver (000s ounces) Asarco 4,490 27,498 28,414 4,615 28,059 24,851 SPCC 2,167 1,814 1,866 2,277 625 2,386 Consolidated 6,657 29,312 30,280 6,892 28,684 27,237 Asarco Beneficial Interest 5,563 28,395 29,339 5,598 28,328 25,881 Gold (ounces) Asarco 3,900 211,100 130,300 4,400 199,500 95,900 SPCC - - - - - - Consolidated 3,900 211,100 130,300 4,400 199,500 95,900 Asarco Beneficial Interest 3,900 211,100 130,300 4,400 199,500 95,900 Zinc (tons) Asarco 94,800 91,700 SPCC - - Consolidated 94,800 91,700 Asarco Beneficial Interest 94,800 91,700 Molybdenum (000s pounds) Asarco 4,180 2,613 SPCC 5,836 4,670 Consolidated 10,016 7,283 Asarco Beneficial Interest 7,077 4,629 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% equity ownership. The minority interest in SPCC represented by Labor Shares in its Peruvian Branch results in Asarco having a beneficial interest in SPCC of 43.2%. Effective April 1995 Asarco's equity ownership of SPCC increased to 63% and its beneficial interest increased to 52.1%. -0-
ASARCO Incorporated
and Subsidiaries
CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
3 Months Ended 9 Months Ended
September 30, September 30,
1995 1994 1995 1994
(in thousands) (in thousands)
Sales of products and services $819,721 $512,968 $2,398,192 $1,443,705 Operating costs and expenses: Cost of products and services 589,472 450,735 1,740,129 1,294,335 Selling, administrative and other 29,858 19,968 93,211 59,348 Provision (recovery) for bad debts 422 648 1,487 (2,086) Depreciation and depletion 26,645 20,396 88,701 62,727 Research and exploration 6,693 5,541 19,459 13,875 Provision for environmental matters - 46,585 - 51,159 Total operating costs and expenses 653,090 543,873 1,942,987 1,479,358 Operating income (loss) 166,631 (30,905) 455,205 (35,653) Interest expense (25,287) (16,103) (68,614) (45,104) Other income (expense) (1,443) 1,918 11,453 7,429 Gain on sale of Asarco Australia Limited - - - 58,512 Earnings (loss) before taxes on income, minority interests and equity earnings 139,901 (45,090) 398,044 (14,816) Taxes on income (benefit) 46,555 (15,248) 126,966 (297) Minority interests in net earnings of consolidated subsidiaries (35,959) (172) (92,263) (474) Equity in earnings of nonconsolidated associated companies, net of taxes of $81 and $374 in 1995; $1,279 and $2,959 in 1994 929 13,865 1,623 30,812 Net earnings $ 58,316 $(16,149) $ 180,438 $ 15,819 Per share amounts: Net earnings (a) $ 1.38 $ (.39) $ 4.27 $ .38 Cash dividends $ 0.20 $ 0.10 $ 0.50 $ 0.30 Weighted average number of shares outstanding 42,402 41,942 42,264 41,850 (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)
September 30, December 31,
1995 1994
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 229,093 $ 18,321
Marketable securities - -
Accounts and notes receivable, net 513,638 383,724
Inventories 399,282 299,148
Other assets 53,949 46,124
Total current assets 1,195,962 747,317
Investments: Cost and available-for-sale 874,777 751,888 Equity 66,836 391,489 Property 4,097,409 2,509,072 Accumulated depreciation and depletion (2,049,765) (1,203,573) Intangible assets 47,279 48,356 Other assets 52,584 46,476 Total Assets $4,285,082 $ 3,291,025 LIABILITIES Current liabilities: Bank loans $ 11,466 $ 5,125 Current portion of long-term debt 27,613 13,330 Accounts payable 311,923 296,983 Salaries and wages 33,867 20,159 Taxes on income 91,379 43,152 Reserve for closed plant and environmental matters 45,632 55,946 Other liabilities 61,965 30,838 Total current liabilities 583,845 465,533 Long-term debt 1,120,409 914,601 Deferred income taxes 230,847 156,450 Reserve for closed plant and environmental matters 24,773 66,458 Postretirement benefit obligation4 other than pensions 94,397 95,186 Other liabilities and reserves 74,092 72,967 Total non-current liabilities 1,544,518 1,305,662 MINORITY INTERESTS 393,770 2,443 COMMON STOCKHOLDERS' EQUITY Common stock (a) 594,351 572,591 Unrealized gain on securities reported at fair value 166,588 91,627 Retained earnings 1,002,010 853,169 Total Common Stockholders' Equity 1,762,949 1,517,387 Total Liabilities, Minority Interests and Common Stockholders Equity $4,285,082 $ 3,291,025 (a) Common shares: authorized 80,000; outstanding 42,480 42,102 -0-
ASARCO Incorporated
and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
3 Months Ended 9 Months Ended
September 30, September 30,
1995 1994 1995 1994
(in thousands) (in thousands)
OPERATING ACTIVITIES
Net earnings (loss) $ 58,316 $(16,149) $180,438 $15,819
Adjustments to reconcile
net earnings to
net cash provided from
(used for)
operating activities:
Depreciation and depletion 26,645 19,757 88,701 62,727
Deferred income taxes 12,950 (13,364) 35,113 302
Treasury stock used for
employee benefits 939 1,261 3,770 3,703
Undistributed equity
(earnings) losses (946) (10,840) (540) (24,967)
Net (gain) loss on sale
of investments
and property and
Asarco Australia Limited 4,749 (221) 2,996 (59,510)
Increase (decrease) in reserve for
closed plant and
environmental matters (21,425) 25,543 (51,999) 14,234
Minority interests 35,959 172 92,263 474
Cash provided from (used for)
operating assets and
liabilities, net of the
consolidation of SPCC:
Accounts and notes receivable (72,356) 18,675 (35,949) (57,421)
Inventories 26,664 (5,259) 10,358 (28,747)
Accounts payable and
accrued liabilities 20,729 (62,999) (10,945) 29,301
Other operating liabilities
and reserves 6,565 10,959 (8,323) 6,914
Other operating assets 14,126 (4,905) 3,584 (11,311)
Foreign currency transaction
(gains) losses 38 191 (1,241) 2,498
Net cash provided from (used for) operating activities 112,953 (37,179) 308,226 (45,984) INVESTING ACTIVITIES Capital expenditures (89,399) (31,651) (275,781) (55,583) Sale of securities, investments and property 26,073 13,406 88,638 93,109 Release of restricted cash 2,177 - 60,450 - Sale of available-for-sale securities 4,823 59,591 13,967 122,265 Purchase of available-for-sale securities (4,623) (59,863) (14,975) (123,063) Purchase of investments (1,545) (68) (37,555) (283) Acquisition of additional interest in SPCC - - (116,444) - Consolidation of the opening cash balance of SPCC - - 93,348 - Net cash provided from (used for) investing activities (62,494) (18,585) (188,352) 36,445 FINANCING ACTIVITIES Debt incurred 65,057 62,217 229,780 108,096 Debt retired (92,272) (595) (121,439) (80,956) Net treasury stock transactions 5,108 3,225 5,343 3,707 Dividends paid (8,487) (4,196) (21,146) (12,557) Net cash provided from (used for) financing activities (30,594) 60,651 92,538 18,290 Effect of exchange rate changes on cash (1,295) (1,039) (1,640) (1,370) Increase (decrease) in cash and cash equivalents 18,570 3,848 210,772 7,381 Cash and cash equivalents at beginning of period 210,523 16,033 18,321 12,500 Cash and cash equivalents at end of period $229,093 $19,881 $229,093 $19,881 -0- 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:
ASARCO Incorporated, 212-510-1810 |
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