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CYPRUS MINERALS REPORTS 1992 EARNINGS OF $92.5 MILLION BEFORE SPECIAL CHARGES OF $426.1 MILLION

 DENVER, Jan. 26 /PRNewswire/ -- Cyprus Minerals Co. (NYSE: CYM) today reported 1992 earnings of $92.5 million, or $2 per share, on revenues of $1,641.0 million, before write-downs and accounting changes, compared with 1991 earnings, before write-downs, of $74.5 million, or $1.53 per share, on revenues of $1,656.0 million. The 1992 charges include write-downs, reorganization expenses, and the one-time charge for several required accounting changes totaling $426.1 million after tax, or $10.45 per share. Including these charges, the 1992 net loss was $333.6 million, or $8.46 per share. By comparison, in 1991, Cyprus earned $42.7 million, or 72 cents per share, which included an after tax charge of $31.8 million primarily for the sale of its talc business. The earnings improvement in 1992, excluding the 1991 and 1992 charges, was primarily due to improved results from coal operations and to company-wide personnel and cost reductions.
 Cyprus reported fourth quarter net income of $18.5 million, or 40 cents per share, on revenues of $407.7 million, before reorganization charges of $4.3 million. By comparison, 1991 earnings, before write- downs of $33.6 million largely for the talc sale, were $5.1 million, or 4 cents per share, on revenues of $383.2 million. Including the special charges, 1992 fourth quarter earnings were $14.2 million, or 31 cents per share, compared with a 1991 fourth quarter loss of $28.9 million.
 Milton H. Ward, Cyprus Minerals' chairman, president, and chief executive officer, said, "This solid improvement in 1992 reflects substantial progress in reducing our costs and increasing productivity in our primary businesses, copper, coal, and lithium. This action, coupled with our strategy of disposing of underperforming assets, emphasizing performance, and reducing personnel levels throughout the company, is necessary to improve our competitiveness.
 "By the end of 1993, the full benefits of the expanded and modernized copper smelter and mine fleet modernization projects will be realized and copper costs will continue to move lower. In addition, other projects to further lower costs will be well underway. We will also be pursuing low cost, low risk incremental expansion in coal and copper and looking externally for growth opportunities through joint ventures or acquisitions," Ward concluded.
 The 1992 charges included the following items:
 (1) Write-Downs
 A second quarter after tax charge of $315.0 million
 ($7.73 per share) to recognize asset write-downs and other
 charges, which primarily reflect weakened market conditions in
 certain regional coal markets and the steel industry;
 (2) Accounting Changes
 The adoption of two new required accounting standards --
 SFAS 106 for postretirement benefits and SFAS 112 for
 postemployment benefits -- retroactive to Jan. 1, 1992,
 which resulted in a $87.6 million ($2.15 per share) after
 tax charge to 1992 first quarter earnings and $5 million in
 additional after tax expense during 1992; and
 (3) Reorganization Charges
 A first quarter after tax reorganization provision of
 $19.2 million for company-wide personnel reductions and a
 fourth quarter provision of $4.3 million (totaling 57 cents
 per share) for further Copper and Corporate personnel
 reductions that are expected to reduce costs approximately
 $40 million in total annually.
 Segment income is earnings before corporate overhead, interest, equity and other, and income taxes. Segment income, as discussed below, also excludes the write-downs, reorganization charges, and the cumulative effect of the accounting changes.
 Copper earned $116.5 million for the year, $11.3 million lower than 1991. Reduced full mine costs of 2 cents per pound were more than offset by lower produced copper sales of 34 million pounds, 2 cents per pound lower copper realizations, and a 10 percent decline in average molybdenum realizations. Although total Cyprus 1992 copper production increased 19 million pounds over 1991 to 662 million pounds, the lower produced copper sales were a result of the shutdown of the Miami smelter for repairs and the modernization project in early 1992. Copper inventories were 55 million pounds higher at year-end and will be reduced in 1993 as throughput in the expanded and modernized smelter increases.
 Copper segment fourth quarter earnings of $24.3 million were $4.1 million better than the fourth quarter of 1991. The improvement over the year earlier quarter was primarily due to higher copper sales partially offset by lower copper and molybdenum prices. Fourth quarter copper realizations averaged $1 per pound compared with $1.04 per pound in 1991. Average molybdenum realizations were 6 percent lower.
 The fourth quarter full mine cost of 76 cents per pound was 8 cents per pound lower than in 1991 and 3 cents per pound lower than the preceding quarter. Higher copper production at the Bagdad and Sierrita mines in Arizona, due to higher grades and increased mill throughput coupled with cost reductions, accounted for the improvement. In December, staffing levels were reduced by 160 personnel.
 During the quarter, Cyprus sold 168 million pounds of produced copper, 20 million pounds more than in the 1991 fourth quarter which was adversely affected by the Miami smelter fire. The modernized Miami smelter continues through a start-up phase.
 Record rain in Arizona during late December and early January has affected copper operations state-wide. The rain has impacted mining conditions, diluted leach copper solutions, and disrupted rail transportation, all of which are expected to result in temporarily higher full mine costs. First quarter 1993 copper production could be reduced by about 10 percent versus planned production rates.
 Coal reported earnings of $41.4 million for the year, the highest earnings since 1985 and $27.0 million more than 1991 earnings. The improved results were due to increased sales totaling 18.8 million tons, which were 1.5 million tons higher than 1991. In addition, full mine costs were reduced by $1.50 per ton. The 1991 results included holding and closure costs for certain Kentucky operations. Higher production and personnel reductions contributed to 11 percent higher productivity for the year with most of the increased production sold in spot markets. The productivity improvements yielded higher profitability in spite of lower contract and spot realizations, which averaged $23.88 per ton in 1992.
 Coal segment earnings for the fourth quarter were $7.9 million compared with earnings of $1.5 million in 1991. Eastern operations improved due to higher productivity, slightly higher prices, and lower costs, particularly at the Kanawha mine in West Virginia. Results at the Emerald mine in Pennsylvania were better than the 1991 quarter in spite of a longwall move and the crossing of a sandstone channel. The operations in the West reported slightly lower operating results for the quarter due to lower average realizations and longwall moves at two mines, offset in part by a small gain on the sale of a 5 percent interest in the Orchard Valley mine in Colorado.
 Fourth quarter 1992 results were lower than the third quarter due to three longwall moves, fewer operating days, and the more difficult mining conditions at Emerald due to the presence of the sandstone channel, resulting in lower production and higher unit costs. There were no longwall moves in the third quarter 1992.
 Cyprus began implementing its strategy of growth through joint ventures by signing a letter of intent with U. S. Steel Mining Co. (USM), a subsidiary of USX Corp., to establish a 50-50 joint venture that would combine USM's existing Cumberland mine facilities and reserves with Cyprus' adjacent coal reserves in Greene County, Penn. The mine would have a life of more than 20 years at current production levels of slightly over 4 million tons per year.
 Other Minerals, which includes lithium, gold, iron ore, and exploration, had combined earnings for the year of $12.2 million compared with earnings of $2.4 million for 1991. Lithium had record earnings of $23.2 million due primarily to lower costs and favorable insurance, contract, and royalty settlements. Gold earned $9.8 million, nearly the same as in 1991. Iron ore incurred a loss of $4.9 million, an improvement of $3.5 million versus 1991, primarily due to higher earnings from power sales. Exploration spending totaled $19.1 million, $1.7 million lower than in 1991.
 For the fourth quarter of 1992, the Other Minerals segment reported earnings of $7.8 million compared with a 1991 loss of $3.3 million. The improved results were due to higher earnings in all business units and slightly lower exploration expense. Lithium earned $6.4 million, $2.5 million higher than 1991 mostly due to lower costs reflecting in part a LIFO inventory adjustment. Gold earned $5.0 million compared with break-even results in 1991 due to higher production resulting from higher grades and lower costs at the Copperstone mine in Arizona. Ore reserves at Copperstone were exhausted in December, and mill operations will cease in the second quarter of 1993. The Golden Cross mine in New Zealand continues to experience lower than expected grades and difficult mining conditions. The Northshore iron ore operation in Minnesota showed improved results, earning $1.7 million due to higher realizations and lower production costs. Cyprus is continuing to evaluate the disposition of Golden Cross and Northshore.
 Corporate expenses for the full year 1992 were about the same as 1991 as cost reductions of about $5 million related to personnel reductions of about 45 percent were offset by higher accruals for stock price related incentive compensation. For the 1992 fourth quarter, corporate expenses were about the same as in 1991 and higher than the previous quarter due to higher incentive compensation expense reflecting the high year-end Cyprus common stock price of 31 1/2.
 Interest, Equity, and Other expense was $5.6 million for the 1992 fourth quarter compared with expense of $1.8 million for 1991. The higher expense was due to the absence of capitalized interest and equity losses at the Bismark zinc mine in Mexico. Cyprus is exploring options to sell its 40 percent interest in this mine.
 Cyprus completed the year in strong financial condition with debt as a percent of total capitalization of 20 percent, a ratio of current assets to current liabilities of 2.2 to 1.0, and a cash balance of $90 million at Dec. 31. Cyprus paid regular dividends of 20 cents per share on common stock and an extra dividend of 5 cents per share on common stock during the fourth quarter. All of the outstanding $3.75 Convertible Exchangeable Preferred Stock, Series B, was converted to common stock during the quarter, and 47.3 million shares of common stock were outstanding at year end.
 Cyprus Minerals, headquartered in Englewood, Colo., is a major producer of copper, coal, and lithium. Cyprus also produces molybdenum, gold and iron ore.
 CYPRUS MINERALS CO.
 Consolidated Statement of Income
 Three and Twelve Months Ended Dec. 31
 (In Millions, Except Per Share Data)
 Three Months Ended Twelve Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues $407.7 $383.2 $1,641.4 $1,656.5
 Costs and Expenses 384.3 421.5 1,948.9 1,594.7
 Income (Loss) from
 Operations 23.4 (38.3) (307.5) 61.8
 Interest Income 1.0 1.5 3.3 5.4
 Interest Expense (4.5) (5.5) (19.8) (22.4)
 Capitalized Interest --- 2.1 3.1 5.4
 Equity Investments and Other (2.1) .1 (7.8) 3.4
 Income (Loss) Before Income
 Taxes 17.8 (40.1) (328.7) 53.6
 Income Tax
 (Provision) Benefit (3.6) 11.2 82.7 (10.9)
 Income (loss) Before
 Cumulative Effect of
 Accounting Change 14.2 (28.9) (246.0) 42.7
 Cumulative Effect of Change
 in Accounting for Benefits
 (Net of Tax) --- --- (87.6) ---
 Net Income (Loss) 14.2 (28.9) (333.6) 42.7
 Preferred Stock Dividends --- (3.6) (11.0) (14.7)
 Income (Loss) Applicable to
 Common Shares $14.2 $(32.5) $(344.6) $28.0
 Earnings (Loss) Per
 Common Share
 Primary $0.31 $(0.83) $(8.46) $0.72
 Fully Diluted $0.31 $(0.83) $(8.46) $0.72
 Excludes Write-downs, Reorganization Expenses and Cumulative Effect
 of Accounting for Benefits.
 Net Income (Loss) $18.5 $5.1 $92.5 $74.5
 Preferred Stock Dividends --- (3.6) (11.0) (14.7)
 Income (Loss) Applicable to
 Common Shares $18.5 $1.5 $81.5 $59.8
 Earnings (Loss) Per
 Common Share
 Primary $.40 $.04 $2.00 $1.53
 Fully Diluted $.40 $.04 $2.00 $1.53
 Weighted Average Common
 Shares Outstanding
 (In Thousands)
 Primary 45,549 39,025 40,758 38,996
 Fully Diluted 46,006 47,057 41,236 47,044
 Common Shares Outstanding
 at End of Period 47,293 39,034 47,293 39,034
 Financial Summary by Business Segment
 Excludes Write-downs and Reorganization Expense in Segments
 Three and Twelve Months Ended Dec. 31
 (In Millions)
 Three Months Ended Dec. 31,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $212.2 $190.3 $24.3 $20.2
 Coal 122.2 112.1 7.9 1.5
 Other Minerals 73.3 80.8 7.8 (3.3)
 Total $407.7 $383.2 40.0 18.4
 Corporate --- --- (11.2) (11.4)
 Interest, Equity and Other --- --- (5.6) (1.8)
 Income (Loss) Before
 Income Taxes --- --- 23.2 5.2
 Income Tax
 (Provision) Benefit --- --- (4.7) (.1)
 Subtotal Earnings Before
 Special Charges --- --- 18.5 5.1
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- (4.3) (34.0)
 Net Income (Loss) Before
 Cumulative Effect of
 Accounting Changes --- --- 14.2 (28.9)
 Cumulative Effect of
 Accounting Changes --- --- --- ---
 Net Income --- --- $14.2 $(28.9)
 Twelve Months Ended Dec. 31,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $887.3 $912.3 $116.5 $127.8
 Coal 462.8 443.2 41.4 14.4
 Other Minerals 291.3 301.0 12.2 2.4
 Total $1,641.4 $1,656.5 170.1 144.6
 Corporate --- --- (36.4) (36.7)
 Interest, Equity and Other --- --- (18.1) (11.9)
 Income (Loss) Before
 Income Taxes --- --- 115.6 96.0
 Income Tax
 (Provision) Benefit --- --- (23.1) (21.5)
 Subtotal Earnings Before
 Special Charges --- --- 92.5 74.5
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- (338.5) (31.8)
 Net Income (Loss) Before
 Cumulative Effect of
 Accounting Changes --- --- (246.0) 42.7
 Cumulative Effect of
 Accounting Changes --- --- (87.6) ---
 Net Income --- --- $(333.6) $42.7
 Financial Summary by Business Segment
 Includes Write-downs and Reorganization Expense in Segments
 Three and Twelve Months Ended Dec. 31
 (In Millions)
 Three Months Ended Dec. 31,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $212.2 $190.3 $20.5 $20.2
 Coal 122.2 112.1 7.9 (8.8)
 Other Minerals 73.3 80.8 7.8 (38.3)
 Total $407.7 $383.2 36.2 (26.9)
 Corporate --- --- (12.8) (11.4)
 Interest, Equity and Other --- --- (5.6) (1.8)
 Income (Loss) Before
 Income Taxes --- --- 17.8 (40.1)
 Income Tax
 (Provision) Benefit --- --- (3.6) 11.2
 Net Income (Loss) Before
 Cumulative Effect of
 Accounting Changes --- --- 14.2 (28.9)
 Cumulative Effect of
 Accounting Changes --- --- --- ---
 Net Income (Loss) --- --- $14.2 $(28.9)
 Twelve Months Ended Dec. 31,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $887.3 $912.3 $38.3 $127.8
 Coal 462.8 443.2 (266.5) 4.1
 Other Minerals 291.3 301.0 (29.3) (33.4)
 Total $1,641.4 $1,656.5 (257.5) 98.5
 Corporate --- --- (50.0) (36.7)
 Interest, Equity and Other --- --- (21.2) (8.2)
 Income (Loss) Before
 Income Taxes --- --- (328.7) 53.6
 Income Tax
 (Provision) Benefit --- --- 82.7 (10.9)
 Net Income (Loss) Before
 Cumulative Effect of
 Accounting Changes --- --- (246.0) 42.7
 Cumulative Effect of
 Accounting Changes --- --- (87.6) ---
 Net Income (Loss) --- --- $(333.6) $42.7
 Key Operating Data
 Three and Twelve Months Ended Dec. 31
 Three Months Ended Twelve Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Sales Volume
 Copper (Millions of Lbs.) 191 168 765 737
 Produced Copper
 (Millions of Lbs.) 168 148 608 642
 Molybdenum (Millions of Lbs.) 9 6 35 37
 Coal (Thousands of Tons) 4,980 4,371 18,841 17,337
 Lithium (Millions of Lbs.
 Carbonate Equiv.) 8 8 32 33
 Talc and Barite
 (Thousands of Tons) 7 125 288 533
 Gold (Thousands of Ounces) 74 38 243 163
 Iron Ore (Thousands of
 Long Tons) 618 664 1,746 1,824
 Average Realization
 Copper ($/Lb.) $1.00 $1.04 $1.04 $1.06
 Coal ($/Ton) $23.80 $24.52 $23.88 $24.63
 Gold ($/Oz.) $355 $383 $362 $387
 Full Mine Cost
 Copper ($/Lb.) $0.76 $0.84 $0.78 $0.80
 Consolidated Balance Sheet
 (In Millions)
 Dec. 31, Dec. 31,
 1992 1991
 ASSETS
 Cash and Cash Equivalents $89.6 $79.0
 Accounts and Notes Receivables, Net 146.3 132.3
 Inventories 307.2 324.2
 Prepaid Expenses 40.9 42.0
 Total Current Assets 584.0 577.5
 Properties - At Cost, Net 974.7 1,330.4
 Deferred Income Taxes 74.9 .1
 Investments & Other Assets 49.6 57.7
 Total Assets $1,683.2 $1,965.7
 LIABILITIES and SHAREHOLDERS' EQUITY
 Current Liabilities $264.8 $278.8
 Long-Term Debt 232.3 239.2
 Deferred Employee Benefits 127.9 17.4
 Deferred Shutdown, Reclamation and
 Environmental 72.6 37.5
 Deferred Taxes 20.1 65.2
 Other Noncurrent Liabilities and
 Deferred Credits 42.5 37.2
 Total Shareholders' Equity 923.0 1,290.4
 Total Liabilities and
 Shareholders' Equity $1,683.2 $1,965.7
 Working Capital Ratio 2.2 2.1
 Debt as a pct. of Total Capitalization 20.1 15.6
 1992 Segment Earnings Restated for SFAS No. 106 and SFAS No. 112
 Excluding Write-Downs and Reorganization
 (in millions)
 First Second Third Fourth 1992
 Quarter Quarter Quarter Quarter YTD
 Copper Segment
 Restated Operating
 Earnings $13.4 $31.6 $47.2 $24.3 $116.5
 Coal Segment
 Restated Operating
 Earnings 3.9 12.4 17.2 7.9 41.4
 Other Minerals
 Restated Operating
 Earnings 8.0 (1.4) (2.2) 7.8 12.2
 Corporate
 Restated Operating
 Expenses (6.7) (10.9) (7.6) (11.2) (36.4)
 Interest, Equity and
 Other (2.6) (5.1) (4.8) (5.6) (18.1)
 Income Taxes
 Restated Income Taxes (3.2) (5.2) (10.0) (4.7) (23.1)
 Income Before
 Write-Downs, Reorg.
 Expense & Cumulative
 Effect of Accounting
 Changes 12.8 21.4 39.8 18.5 92.5
 Reorganization Expense
 (Net of Tax) (19.2) --- --- (4.3) (23.5)
 Write-Downs (Net of Tax) --- (315.0) --- --- (315.0)
 Cumulative Effect of
 Accounting Changes
 (Net)(a) (87.6) --- --- Previously Report
ed $(0.22) $(7.56) $0.96 $0.31 ---
 Restated Earnings
 Per Common Share $(2.50) $(7.60) $0.92 $0.31 $(8.46)
 Restated EPS Excluding
 Write-Downs,
 Reorganization, and
 Cumulative Effect
 of Accounting
 Changes $0.23 $0.45 $0.92 $0.40 $2.00
 (a) Adoption of SFAS Nos. 106 & 112
 -0- 1/26/93
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM)


CO: Cyprus Minerals Co. ST: Colorado IN: MNG SU: ERN

MC -- DV002 -- 9228 01/26/93 15:56 EST
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