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 In DC018, BenguetCorp Reports Earnings for the Third Quarter of

1991, moved Friday, Nov. 15, we are advised by a representative for the company that the first graph, fourth line, should read "P25,100,000 (US$934,000)" not "(US$834,000)"; the sixth graph, third line, should read "earnings of P22,200,000 (US$826,000)" not "(US$828,000)"; and the seventh graph, sixth line, should read "percent of the P965.0/million" not "P985.0/million" as originally issued. The corrected release follows:
 MANDALUYONG, Metro Manila, Nov. 15 /PRNewswire/ -- Dennis R. Belmonte, president and chief executive officer of BenguetCorp, reported that this quarter's consolidated earnings amounted to P25,100,000 (US$934,000) or P0.22 (US$0.008) per share. Twenty-one percent higher than the earnings of P20,800,000 (US$806,000) or P0.18 (US$0.007) per share for the same period last year. The improvement is attributed to reduced losses from the Benguet Gold Operations, higher earnings reported by affiliate companies and earnings from metal trading.
 For the nine-month period, earnings from operations before extraordinary and non-recurring items amounted to P146,000,000 (US$5,422,000) or P1.28 (US$0.047) per share, an increase of 450 percent over the operating earnings of P26,600,000 (US$1,030,000) or P0.24 (US$0.010) per share for the same period last year. After the extraordinary and non-recurring items, however, this year's nine months earnings of P141,100,000 (US$5,241,000) or P1.24 (US$0.046) per share were 20 percent lower than the net earnings of P176,800,000 (US$6,865,000) or P1.56 (US$0.061) per share in 1990. A decline in the Dizon mine's production output on account of Mt. Pinatubo's eruption reduced operating revenue for the third quarter by 19 percent to P794,600,000 (US$29,521,000) from the operating revenue of P984,900,000 in 1990. Operating revenue for the nine-month period this year of P2,785,000,000 (US$103,462,000) was 4 percent lower than operating revenue of P2,911,800,000 for the same period last year.
 Net earnings from the Dizon mine for the third quarter declined by 69 percent to P30,600,000 (US$1,137,000) from earnings of P98,500,000 for the same quarter in 1990 after provision for insurance recovery from business interruption and for property damage, brought about by the continuing effect of the eruption of Mt. Pinatubo. At the end of the third quarter, 14,127 tonnes of copper concentrates were stockpiled at the mine site valued and booked as revenue at US$1.05 per pound copper and US$355 per ounce gold. Benguet Gold Operations reduced its net loss for the third quarter to P1,500,000 (US$58,000), 93 percent lower than the net loss of P22,700,000 for the same period in 1990. Net loss for the nine-month period of P22,500,000 (US$837,000) was 69 percent lower than the net loss of P73,800,000 in 1990. The Masinloc Chromite Operation incurred a net loss of P260,000 (US$9,000) in the third quarter against net earnings of P2,100,000 for the same period last year. Net loss from the Paracale Gold Operation of P18,700,000 (US$694,000) was due to lower production output this quarter compared to the net earnings of P3,300,000 for the same quarter in 1990. The Benguet- Oreline Contract Tails Buying Operation generated net earnings this quarter of P1,500,000 (US$55,000), 53 percent lower than the earnings of P3,100,000 for the same quarter in 1990.
 Net earnings from metal trading transactions for the third quarter were P4,900,000 (US$183,000), compared with a loss of P14,800,000 in 1990 principally from maturing copper hedge contracts.
 Benguet Management Corporation (BMC), a 100 percent-owned subsidiary and its subsidiaries reported a consolidated net loss for this quarter of P19,200,000 (US$715,000), 49 percent higher than the consolidated net loss of P13,000,000 reported for the same period last year. BenguetCorp International Limited (BIL), a 100 percent- owned subsidiary in Hong Kong, and its subsidiaries reported consolidated earnings of P1,600,000 (US$58,000). Itogon-Suyoc Mines, Inc. (ISMI), a 54 percent-owned subsidiary reported a net loss of P2,700,000 (US$102,000) compared with earnings of P2,900,000 last year.
 For the third quarter this year, affiliates reported the following: Engineering Equipment, Inc. (43.7 percent-owned) - earnings of P22,200,000 (US$826,000) compared with a net loss of P20,500,000 in 1990; Petrofields Exploration & Development Co., Inc. (41.5 percent-owned) - earnings of P130,000 (US$5,000) mainly from interest; AsianBank Corporation (28 percent-owned) - earnings of P16,700,000 (US$619,000); AB Capital and Investments Corporation (28 percent-owned) - earnings of P13,400,000 (US$498,000); Monte de Piedad and Savings Bank (20 percent-owned) - earnings of P9,600,000 (US$358,000).
 The Antamok Gold Project is 91 percent complete as of the end of the third quarter. The company expects to declare the project in commercial operation by January 1992 unless major unforeseen problems occur during the debugging process. Total expenditures to date before financing charges amounted to P865.0/million which is 90 percent of the P965.0/million estimated basic project cost.
 Belmonte also reported that no cash dividends will be declared by the company for this year, as substantial resources were used for the construction and development of the Antamok Gold Project. In ddition, substantial funding will be required for the rehabilitation of the Dizon Copper-Gold Operation which was greatly affected by the eruption of Mt. Pinatubo.
 Belmonte said that management is optimistic that the company's year-end results would remain satisfactory, particularly with the Dizon mine back to its normal operations and shipments of copper concentrates having resumed this fourth quarter. The Antamok Gold Project is expected to generate earnings for the company even at the present depressed gold price levels. The company also looks forward to a reduction of losses with the restructuring of the Paracale Gold Operations and a turn around in the underground mines in the Benguet Gold Operations with the use of bulk mining methods for low grade, high volume, wide-vein ore reserves that will substantially reduce production cost per ounce of gold.
 In Thousands (Except Per Share Data)
 Three Months Ended
 Sept. 30,
 Philippine Pesos 1991 1990
 Operating Revenue P 794,500 P 984,900
 Operating Profit (loss) ( 46,200) 257,100
 Other Income (Expenses)Net 71,300 ( 236,300)
 Net Income Before
 Other Items 25,100 20,800
 Other Items (a) -- --
 Net Income (b) P 25,100 P 20,800
 Earnings Per Share (c)
 Net Income Before
 Other Items P 0.22 P 0.18
 Other Items -- --
 Net Income P 0.22 P 0.18
 Operating Revenue $ 29,521 $ 38,243
 Operating Profit (Loss) ( 1,717) 9,983
 Other Income (Expenses)Net 2,651 ( 9,177)
 Net Income Before
 Other Items 934 806
 Other Items (a) -- --
 Net Income (b) $ 934 806
 Earnings Per Share (c)
 Net Income Before
 Other Items $ 0.008 $ 0.007
 Other Items -- --
 Net Income $ 0.008 $ 0.007
 Nine Months Ended
 Sept. 30,
 Operating Revenue P 2,785,500 P 2,911,800
 Operating Profit (loss) 258,500 572,700
 Other Income (Expenses)Net(112,500) ( 546,100)
 Net Income Before
 Other Items 146,000 26,600
 Other Items (a) ( 4,900) 150,200
 Net Income (b) P 141,100 P 176,800
 Earnings Per Share (c)
 Net Income Before
 Other Items P 1.28 P 0.24
 Other Items ( 0.04) 1.32
 Net Income P 1.24 P 1.56
 Operating Revenue $ 103,462 $ 113,079
 Operating Profit (Loss) 9,604 22,240
 Other Income (Expenses)Net( 4,182) ( 21,210)
 Net Income Before
 Other Items 5,422 1,030
 Other Items (a) ( 181) 5,835
 Net Income (b) $ 5,241 6,865
 Earnings Per Share (c)
 Net Income Before
 Other Items $ 0.047 $ 0.010
 Other Items ( 0.001) 0.051
 Net Income $ 0.046 $ 0.061
 (a) Consists mainly of the extraordinary loss from the write-off of a portion of the capital development costs of the citrus project of Benguet Management Corporation in 1991, and non-recurring gains from the sale of investments in shares of stock and real estate properties in 1990.
 (b) Deferred income tax is computed on a partial application basis, while unrealized foreign exchange losses in 1990 are deferred and amortized to coincide with the actual repayment of outstanding currency obligations. The effect of these methods is to increase net income by P1,200,000 (US$44,000) for the third quarter but to decrease net income by P200,000 (US$6,000) for the nine months of 1991 (to decrease net income by P800,000 (US$31,000) and P6,800,000 (US$264,000) for the same periods in 1990).
 (c) Earnings per share are based on the weighted average number of common shares outstanding.
 (d) Benguet is a Philippine corporation and its books of accounts are kept in Philippine pesos. U.S. dollar figures are shown purely for convenience and are computed based on the interbank guiding rate at September 30 of P26.92 to US$1.00 in 1991 (P25.75 to US$1.00 in 1990).
 -0- 11/18/91
 /CONTACT: Robert V. Schnabel, U.S. Counsel, Benguet Corporation, 202-638-2241/ CO: Benguet Corporation ST: IN: SU: ERN TW-SB -- DC018 -- 1445 11/18/91 12:32 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 18, 1991

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