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ALCAN ALUMINIUM LIMITED - REPORTS 1993 RESULTS

 MONTREAL, Jan. 17 /PRNewswire/ -- Alcan Aluminium Limited (NYSE: AL) reports a consolidated loss of US$104 million for the year ended Dec. 31, 1993, compared to a loss of $112 million for 1992. After preference share dividends, the loss per common share for the year was 54 cents versus a loss per common share of 60 cents for 1992.
 Results for 1993 included rationalization charges, net of tax, of $37 million, or 16 cents per common share. The loss for 1992 included environmental and rationalization charges, net of tax, of $58 million, or 26 cents per common share.
 Commenting on the year, Jacques Bougie, president and chief executive officer, stated, "Business conditions in 1993 followed the same frustrating pattern as in 1992. Despite achieving record volumes and further cost reductions, Alcan posted another loss year due to the continuing deterioration in the prices of most products. The company, however, achieved its cash neutrality target and, in fact, was able to reduce total debt."
 Looking at the industry, Mr. Bougie stated that, "Massive exports of aluminum from the CIS continue to create an oversupply problem of crisis proportions. Unless balance can be restored to the industry, there is little hope of any sustained relief from severely depressed prices. The governments of the principal aluminum producing nations have recognized that this situation is serious and abnormal and are meeting this week in Brussels to seek solutions to this structural problem."
 "In view of the deteriorating situation the industry faces, Alcan last week decided to temporarily close 156,000 tons of annual smelter capacity. This, along with earlier cuts, will lower our smelter operating rate to about 85 percent."
 ALCAN ALUMINIUM LIMITED
 FOURTH QUARTER TWELVE MONTHS
 1993 1992 1993 1992
 Sales and operating
 revenues (US$ millions) 1,830 1,845 7,232 7,596
 Gross profit (US$ millions) 195 201 807 875
 Shipments (in thousands of tons)
 Ingot products 251 257 887 870
 Fabricated products 410 333 1,560 1,389
 Fabrication of customer-
 owned metal 21 38 91 206
 Total volume 682 628 2,538 2,465
 Realizations (US$ per ton)
 Ingot products - own primary 1,231 1,281 1,295 1,330
 Fabricated products 2,842 3,309 2,975 3,432
 For the fourth quarter of 1993, Alcan reported a loss of $36 million, equivalent to 17 cents per common share, which included rationalization charges, net of tax, of $25 million, or 11 cents per common share. Rationalization charges were principally for severance costs in the alumina, downstream and research and development areas in Europe and North America. In the fourth quarter of 1992, Alcan reported a loss of $56 million, equivalent to 29 cents per common share, which included environmental and rationalization charges of $49 million, or 22 cents per common share.
 Fabricated product volumes reached record high levels in both the fourth quarter and full year of 1993. Volumes in the fourth quarter were 431 thousand tons (kt), a 60-kt increase from the year-ago quarter, largely reflecting higher can sheet shipments in the United States. For the year, volumes were 1,651 kt, a 3.5 percent increase over 1992.
 Fabricated product prices, however, continued to deteriorate as the year progressed. The average realized price on fabricated product shipments in the fourth quarter declined by 14 percent, or $467 per ton (/t), from a year earlier. For all of 1993, the average realized price was $2,975/t, or $457/t lower than the average for 1992. Approximately 40 percent of the decline in the yearly average price was due to currency movements.
 Ingot product shipments, at 251 kt in the fourth quarter of 1993, were 6 kt lower than in the fourth quarter of 1992. For the full year of 1993, ingot shipments increased 17 kt to 887 kt. Ingot prices remained at depressed levels throughout the year. The average realized price on shipments of Alcan's own ingot products in the fourth quarter was $50/t tonne lower than a year earlier and, for the year, was $35/t lower than the 1992 average.
 While total volumes reached record levels in 1993, sales and operating revenues were $364 million lower than in the previous year. In spite of this, Alcan's loss before income taxes and other items declined by $71 million, reflecting the benefits of cost reductions, lower interest expense and currency movements.
 FOURTH QUARTER TWELVE MONTHS
 1993 1992 1993 1992
 Net income (Loss) (US$ millions)
 Canada (16) (57) (32) (120)
 United States (21) (20) (57) (18)
 South America (6) (14) (8) (45)
 Europe (11) 1 (31) -
 Pacific (2) 13 (9) 48
 Other (including eliminations) 20 21 33 23
 (36) (56) (104) (112)
 In Canada, losses in the fourth quarter declined from the year-ago quarter due to reduced smelter production costs, improved fabricated product volumes and lower environmental charges. Results in the United States were little changed as significant volume gains were offset by weaker selling prices. In South America, while losses from Brazilian operations were reduced due to better volumes, overall business activity remains low.
 In Europe, Alcan posted a loss in the fourth quarter versus a small profit a year earlier. While business conditions were, in general, extremely difficult, operations in Germany and Switzerland remain profitable. Losses in the United Kingdom and Italy increased.
 In the Pacific area, a small loss was recorded in the fourth quarter compared to a profit a year earlier. This was largely due to poor results from Nippon Light Metal Company, Limited (NLM), a related company in Japan whose business has been severely affected by the downturn in the Japanese economy. Other related companies in Japan and India continue to be profitable.
 Alcan recorded a loss from equity-accounted companies of $12 million in 1993 versus equity income of $53 million in 1992, mainly due to losses sustained by NLM.
 Included in Other is income from shipping and bauxite trading activities as well as adjustments for intercompany profits.
 Alcan Aluminium Limited, a Canadian company, is the parent organization of a multinational group of companies involved in all facets of the aluminum business. With operations in more than 20 countries, Alcan has primary production capacity worldwide of 1.7 million tons per year and employs 44,000 people.
 The average number of common shares outstanding during the fourth quarter of 1993 was 224.0 million compared to 223.8 million in the same quarter of last year.
 NOTE:
 All dollar amounts are stated in U.S. dollars.
 All tonnages are stated in metric tons (2,204.6 pounds).
 All figures are unaudited.
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Statement Of Income
 (Unaudited, in millions of US$, except per share amounts)
 Periods ended Dec. 31 Fourth Quarter Year
 1993 1992 1993 1992
 Revenues
 Sales and operating revenues$ 1,830 $ 1,845 $ 7,232 $ 7,596
 Other income 30 18 75 69
 1,860 1,863 7,307 7,665
 Costs and expenses
 Cost of sales and operating
 expenses 1,527 1,537 6,002 6,300
 Depreciation 112 116 443 449
 Selling, administrative and general
 expenses 143 149 551 596
 Research and development
 expenses 22 31 99 125
 Interest 52 59 212 254
 Other expenses 43 64 106 118
 1,899 1,956 7,413 7,842
 Income (Loss) before income taxes
 and other items (39) (93) (106) (177)
 Income taxes (14) (23) (13) (17)
 Income (Loss) before other items (25) (70) (93) (160)
 Equity income (loss) (9) 15 (12) 53
 Minority interests (2) (1) 1 (5)
 Net income (Loss) $ (36) $ (56) $ (104) $ (112)
 Dividends on preference shares 4 10 18 23
 Net income (Loss) attributable
 to common shareholders (40) (66) (122) (135)
 Net income (Loss) per
 common share $ (0.17) $ (0.29) $(0.54) $ (0.60)
 Dividends per common share $ 0.075 $ 0.075 $ 0.30 $ 0.45
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Balance Sheet
 (Unaudited, in millions of US$, except per share amounts)
 Periods ended Dec. 31 1993 1992
 Assets
 Current assets $ 2,402 $ 2,655
 Property, plant and equipment - net 6,005 6,256
 Investments 1,053 923
 Other assets - net 350 312
 Total assets $ 9,810 $ 10,146
 Liabilities and Shareholders' Equity
 Current liabilities
 Short-term debt $ 328 $ 499
 Other 1,007 1,046
 Debt not maturing within one year 2,322 2,287
 Deferred income taxes 888 955
 Other liabilities 816 740
 Preference shares 353 353
 Common shareholders' equity 4,096 4,266
 Total liabilities and shareholders'
 equity $ 9,810 $ 10,146
 Common shareholders' equity per
 common share $ 18.28 $ 19.06
 Ratio of total borrowings to equity 37:63 37:63
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Statement Of Cash Flows
 (Unaudited, in millions of US$)
 Year ended Dec. 31 1993 1992
 Net income (Loss) $ (104) $ (112)
 Adjustments:
 Depreciation 443 449
 Deferred income taxes (54) (87)
 Change in operating working capital 103 146
 Change in deferred charges, receivables
 and credits 3 30
 Other 53 39
 Cash from operating activities 444 465
 Financing activities:
 Borrowings (92) (67)
 Equity - common and preferred 5 148
 Dividends (85) (125)
 Cash used for investment activities (339) (450)
 Effect of exchange rate changes on
 cash and time deposits (1) (8)
 Decrease in cash and time deposits $ (68) $ (37)
 -0- 1/17/94

 /CONTACT: Charles Belbin of Alcan Aluminium Limited, 514-848-8232/
 (AL)


CO: Alcan Aluminium Limited ST: Quebec IN: MNG SU: ERN

TM -- NY091 -- 1467 01/17/94 17:03 EST
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