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CYPRUS MINERALS REPORTS A 36 PERCENT INCREASE IN THIRD QUARTER 1992 EARNINGS

 CYPRUS MINERALS REPORTS A 36 PERCENT INCREASE
 IN THIRD QUARTER 1992 EARNINGS
 DENVER, Oct. 15 /PRNewswire/ -- Cyprus Minerals Co. (NYSE: CYM) today reported earnings for the third quarter of 1992 of $41.4 million, or 96 cents per share, on revenues of $431.7 million. This was an increase of 36 percent compared with 1991 third quarter earnings of $30.4 million, or 68 cents per share, on revenues of $441.9 million. On a fully diluted basis, third quarter 1992 earnings per share were 87 cents compared with 65 cents in the 1991 third quarter. The earnings improvement reflected increased sales of produced copper at higher prices, significantly higher coal production and sales, and productivity improvements which lowered coal costs by almost $3.00 per ton.
 In the first nine months, Cyprus earned $78.6 million, or $1.65 per share on a fully diluted basis, before a first quarter reorganization charge and second quarter write-downs on revenues of $1,233.7 million. In the first nine months of 1991, Cyprus earned $71.6 million, or $1.52 per share on a fully diluted basis, on revenues of $1,273.3 million. As previously reported, Cyprus recorded first half 1992 after-tax charges totaling $334.2 million for asset write-downs and a reorganization provision. Including these charges, Cyprus' loss for the first nine months was $255.6 million or $6.81 per share.
 Segment income is earnings before corporate overhead, interest, equity and other, and income taxes. Segment income, as discussed below, excludes the write-downs and reorganization charge.
 Copper's third quarter earnings of $48.1 million were $10.5 million higher than the third quarter of 1991. Most of the earnings improvement was attributed to higher copper prices and sales. Third quarter copper realizations averaged $1.11 per pound compared with $1.04 per pound in 1991. Third quarter full mine production cost of 79 cents per pound was 2 cents per pound higher than the like period last year due to lower molybdenum by-product credits.
 Cyprus sold 176 million pounds of produced copper compared with 164 million pounds in the third quarter 1991 primarily due to higher concentrate sales. The new ISASMELT smelter expansion start-up in Miami, Ariz., continued as planned. This expanded smelter is expected to reach capacity levels ahead of the scheduled date in mid-1993.
 For the first nine months, 1992 copper earnings of $94.4 million were $13.2 million lower than 1991, primarily due to lower sales of produced copper and lower molybdenum prices, offset in part by lower cost of sales. Produced copper sales were 54 million pounds lower due to the concentrate inventory buildup in the first half of 1992 resulting from the Miami smelter fire in November 1991 and the installation of the new ISASMELT equipment.
 Coal's record earnings of $18.0 million in the third quarter were $11.4 million above the 1991 third quarter. Productivity improvements and higher production, coupled with cost reductions, resulted in 13 percent lower costs. These improvements led to increased spot sales of nearly one million tons. Spot market realizations continued weak partly due to continued mild weather in the East and increased competition in the West. An overall productivity increase in the quarter resulted from improved longwall efficiency at several mines as well as higher production coupled with workforce reductions. Production and costs also benefitted from the absence of longwall equipment moves during the quarter.
 The Emerald mine in Pennsylvania again reported significantly improved quarterly results from higher production, better mining conditions and improved preparation plant recovery. The Plateau mine in Utah reported improved earnings due to substantially higher productivity and 20 percent lower unit costs. Earnings in Kentucky were higher than the 1991 third quarter due to higher productivity and lower unit costs, following a 25 percent workforce reduction in mid-July 1992. Earnings for the 1992 quarter were slightly lower in Colorado due to weak western coal markets resulting in lower realizations, offset in part by lower average costs. The 1991 third quarter included a $2.1 million gain from the sale of a 15 percent equity interest in the Orchard Valley mine.
 For the first nine months, Coals' earnings of $36.2 million were $23.3 million better than the like period in 1991. Higher production and sales and 10 percent lower costs, offset in part by lower average realizations, accounted for the improved earnings.
 Other Minerals, which includes lithium, gold, iron ore and exploration, reported a combined loss of $2.0 million for the third quarter, compared with a profit of $6.7 million in the third quarter of 1991. The earnings decline was principally due to lower iron ore and gold earnings plus the absence of earnings from talc, which was sold in the second quarter of 1992. Iron Ore's loss of $4.4 million in the third quarter 1992, compared with a loss of $1.0 million in 1991, resulted from a temporary shutdown caused by weak sales. The Northshore iron ore operation in Minnesota resumed production in mid-September. Gold earned $.6 million, $5.1 million less than the 1991 quarter. Despite higher sales, results were impacted by higher costs and lower gold prices compared with the 1991 third quarter. Costs at the Copperstone gold mine in Arizona increased due to lower grades as the mine nears the end of its life. Additionally, results from the Golden Cross mine in New Zealand, which began operation in February 1992, were adversely affected by lower than expected gold production due to lower ore grades and recoveries. Lithium earned $7.1 million, $2.1 million higher than the 1991 quarter primarily due to favorable insurance and royalty settlements. Exploration expenses totaled $5.3 million, $1.0 million higher than the 1991 third quarter. Year-to-date earnings for Other Minerals were $5.0 million, essentially unchanged from the first nine months of 1991.
 Interest, Equity and Other reported an expense of $4.7 million in the third quarter, compared with $3.0 million in the 1991 quarter. For the first nine months, the expense was $12.4 million, compared with $6.4 million in 1991. The 1991 results included a $3.8 million gain on the sale of a silver mine.
 Cyprus' financial position continues strong with debt as a percent of total capitalization of 18.7 percent, a ratio of current assets to current liabilities of 2.2 to 1.0, and cash balances increasing to nearly $100 million at September 30. Cyprus paid dividends of 20 cents per share on common stock and $.9375 per share on preferred stock during the quarter. Cyprus has called for redemption of all of its outstanding Convertible Exchangeable Preferred Stock, Series B on Oct. 31, 1992. If all of the shares are converted into common shares, Cyprus' outstanding shares of common would increase from 39.3 million shares to 47.2 million shares.
 Milton H. Ward, Cyprus Minerals' chairman, president, and chief executive officer, said, "We are continuing to concentrate our efforts on streamlining our organization and improving productivity of our operations. Third quarter results were encouraging, especially in coal, where results have improved in the face of weak markets. In copper, we continue to examine and invest in major opportunities that will yield significant cost reductions. During the quarter, we approved expenditures to acquire a fleet of new, larger, state-of-the-art trucks and shovels for our major copper mines. We continue to evaluate a number of major opportunities, including the building of a refinery to become self-sufficient in refining all of our copper from our expanded smelter facility, increasing copper production capacity, including a possible major expansion at Bagdad, and constructing co-generation power facilities to reduce costs.
 "While the economic outlook in the U.S., Japan, and Europe continues to remain uncertain, we are positioning ourselves to maintain healthy earnings if markets weaken. Our financial strength indeed positions us to pursue new growth opportunities," Ward concluded.
 Cyprus Minerals, headquartered in Englewood, Colo., is a major producer of copper, coal, lithium, and molybdenum. Cyprus also produces gold and iron ore.
 CYPRUS MINERALS CO.
 Consolidated Statement of Income
 Three and Nine Months Ended Sept. 30
 (In Millions, Except Per Share Data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues $431.7 $441.9 $1,233.7 $1,273.3
 Costs and Expenses 375.1 399.0 1,558.9 1,173.2
 Income (Loss) from
 Operations 56.6 42.9 (325.2) 100.1
 Interest Income .8 1.3 2.3 3.9
 Interest Expense (4.7) (5.7) (15.2) (16.9)
 Capitalized Interest --- 1.6 3.1 3.3
 Equity Investments and Other (.8) (.2) (5.7) 3.3
 Income (Loss) Before Income
 Taxes 51.9 39.9 (340.7) 93.7
 Income Tax
 (Provision) Benefit (10.5) (9.5) 85.1 (22.1)
 Net Income (Loss) 41.4 30.4 (255.6) 71.6
 Preferred Stock Dividends (3.7) (3.7) (11.1) (11.1)
 Income (Loss) Applicable to
 Common Shares $37.7 $26.7 $(266.7) $60.5
 Earnings (Loss) per
 Common Share
 Primary $0.96 $0.68 $(6.81) $1.55
 Fully Diluted $0.87 $0.65 $(6.81) $1.52
 Excludes Second Quarter Write-downs and First Quarter
 Reorganization Expense
 Net Income (Loss) $41.4 $30.4 $78.6 $71.6
 Preferred Stock Dividends (3.7) (3.7) (11.1) (11.1)
 Income (Loss) Applicable to
 Common Shares $37.7 $26.7 $67.5 $60.5
 Earnings (Loss) per
 Common Share
 Primary $0.96 $0.68 $1.73 $1.55
 Fully Diluted $0.87 $0.65 $1.65 $1.52
 Weighted Average Common
 Shares Outstanding
 (In Thousands)
 Primary 39,291 39,009 39,149 38,986
 Fully Diluted 47,716 47,003 47,577 46,994
 Financial Summary by Business Segment
 Excludes Write-downs and Reorganization Expenses in Segments
 Three and Nine Months Ended Sept. 30
 (In Millions)
 Three Months Ended Sept. 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $239.2 $236.3 $48.1 $37.6
 Coal 127.7 116.2 18.0 6.6
 Other Minerals 64.8 89.4 (2.0) 6.7
 Total $431.7 $441.9 64.1 50.9
 Corporate --- --- (7.5) (8.0)
 Interest, Equity and Other --- --- (4.7) (3.0)
 Income (Loss) Before
 Income Taxes --- --- 51.9 39.9
 Income Tax
 (Provision) Benefit --- --- (10.5) (9.5)
 Subtotal --- --- 41.4 30.4
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- --- ---
 Net Income (Loss) --- --- $41.4 $30.4
 Nine Months Ended Sept. 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $675.2 $722.0 $94.4 $107.6
 Coal 340.5 331.1 36.2 12.9
 Other Minerals 218.0 220.2 5.0 4.9
 Total $1,233.7 $1,273.3 135.6 125.4
 Corporate --- --- (25.0) (25.3)
 Interest, Equity and Other --- --- (12.4) (6.4)
 Income (Loss) Before
 Income Taxes --- --- 98.2 93.7
 Income Tax
 (Provision) Benefit --- --- (19.6) (22.1)
 Subtotal --- --- 78.6 71.6
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- (334.2) ---
 Net Income (Loss) --- --- $(255.6) $71.6
 Financial Summary by Business Segment
 Includes Write-downs and Reorganization Expenses in Segments
 Three and Nine Months Ended Sept. 30
 (In Millions)
 Three Months Ended Sept. 30,

 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $239.2 $236.3 $48.1 $37.6
 Coal 127.7 116.2 18.0 6.6
 Other Minerals 64.8 89.4 (2.0) 6.7
 Total $431.7 $441.9 64.1 50.9
 Corporate --- --- (7.5) (8.0)
 Interest, Equity and Other --- --- (4.7) (3.0)
 Income (Loss) Before
 Income Taxes --- --- 51.9 39.9
 Income Tax
 (Provision) Benefit --- --- (10.5) (9.5)
 Net Income (Loss) --- --- $41.4 $30.4
 Nine Months Ended Sept. 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $675.2 $722.0 $20.1 $107.6
 Coal 340.5 331.1 (271.8) 12.9
 Other Minerals 218.0 220.2 (36.5) 4.9
 Total $1,233.7 $1,273.3 (288.2) 125.4
 Corporate --- --- (37.0) (25.3)
 Interest, Equity and Other --- --- (15.5) (6.4)
 Income (Loss) Before
 Income Taxes --- --- (340.7) 93.7
 Income Tax
 (Provision) Benefit --- --- 85.1 (22.1)
 Net Income (Loss) --- --- $(255.6) $71.6
 Key Operating Data
 Three and Nine Months Ended Sept. 30
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Sales Volume
 Copper (Millions of Lbs.) 194 192 574 569
 Produced Copper
 (Millions of Lbs.) 176 164 440 494
 Molybdenum (Millions of Lbs.) 9 8 26 31
 Coal (Millions of Tons) 5 4 14 13
 Lithium (Millions of Lbs.
 Carbonate Equiv.) 8 9 24 25
 Talc and Barite
 (Thousands of Tons) 8 145 281 408
 Gold (Thousands of Ounces) 64 47 169 125
 Iron Ore (Thousands of
 Long Tons) 423 728 1,128 1,160
 Average Realization
 Copper ($/lb.) $1.11 $1.04 $1.05 $1.06
 Gold ($/oz.) $362 $383 $365 $387
 Full Mine Cost
 Copper ($/lb.) $0.79 $0.77 $0.79 $0.78
 Consolidated Balance Sheet
 (In Millions)
 Sept. 30, Dec. 31,
 1992 1991
 ASSETS
 Cash and Cash Equivalents $99.1 $79.0
 Accounts and Notes Receivables, Net 136.8 132.3
 Inventories 324.1 324.2
 Prepaid Expenses 37.0 42.0
 Total Current Assets 597.0 577.5
 Properties - At Cost, Net 968.9 1,330.4
 Federal Deferred Income Taxes 58.5 .1
 Investments & Other Assets 46.7 57.7
 Total Assets $1,671.1 $1,965.7
 LIABILITIES and SHAREHOLDERS' EQUITY
 Current Liabilities $268.8 $278.8
 Long-Term Debt 232.7 239.2
 Noncurrent Liabilities and
 Deferred Credits 158.5 157.3
 Total Shareholders' Equity 1,011.1 1,290.4
 Total Liabilities and
 Shareholders' Equity $1,671.1 $1,965.7
 Working Capital Ratio 2.2 2.1
 Debt as a pct. of Total Capitalization 18.7pct. 15.6pct.
 -0- 10/15/92
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM) CO: Cyprus Minerals Co. ST: Colorado IN: MNG SU: ERN


MC-BB -- DV007 -- 0485 10/15/92 13:57 EDT
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