Printer Friendly

CYPRUS MINERALS REPORTS SECOND QUARTER EARNINGS OF $23 MILLION, BEFORE WRITE-DOWNS

 CYPRUS MINERALS REPORTS SECOND QUARTER EARNINGS
 OF $23 MILLION, BEFORE WRITE-DOWNS
 DENVER, July 22 /PRNewswire/ -- Cyprus Minerals Co. (NYSE: CYM) today reported earnings, before write-downs, for the second quarter 1992 of $23.0 million, or 49 cents per share, on revenues of $403.6 million. By comparison, 1991 second quarter earnings were $20.0 million, or 42 cents per share, on revenues of $412.8 million. For the first six months, Cyprus earned $37.2 million before write- downs and the first quarter reorganization charge, or 76 cents per share, on revenues of $802.0 million. For the first six months of 1991, Cyprus earned $41.2 million, or 87 cents per share, on revenues of $831.4 million.
 As reported on July 7, Cyprus recorded an after-tax charge of $315.0 million in the 1992 second quarter to recognize asset write- downs and other charges, which primarily reflect weakened market conditions in certain regional coal markets and the steel industry. In the first quarter 1992, Cyprus recorded an after-tax reorganization provision of $19.2 million to reduce personnel company-wide, move the Copper Company headquarters to Arizona, and reorganize the Coal
Company. Including these charges, Cyprus reported a second quarter


1992 net loss of $292.0 million, or $7.56 per share and a 1992 first half loss of $297.0 million, or $7.79 per share.
 Segment income is earnings before corporate overhead, interest, equity investments and other and income taxes. Operating income, as discussed below, excludes the write-downs and reorganization charge:
 Copper earned $32.4 million in the second quarter, compared with $35.7 million for the like quarter in 1991. In the quarter, copper prices averaged $1.03 per pound, essentially the same as last year. Second quarter 1992 full mine production costs for copper of 77 cents per pound were 5 cents lower than last quarter and 1 cent lower than the second quarter 1991. Improved costs in the second quarter reflected increased mill through-put and recoveries, lower mining costs and slightly higher ore grades at several mines. For the year, full mine costs are expected to be about 80 cents per pound.
 Cyprus sold 134 million pounds of produced copper in the second quarter, which was 41 million pounds lower than 1991 due to concentrate inventory buildup into the second quarter, resulting from the Miami smelter fire in November 1991. Repairs to the electric furnace were completed in March. Second quarter results included income of $6.5 million from business interruption insurance resulting from the smelter fire.
 The $100 million smelter construction project using ISASMELT technology was completed ahead of schedule and on budget. Start-up occurred in June. When full operating capacity is reached, anticipated by mid-1993, Cyprus' smelting capacity is expected to increase from 450,000 tons to 650,000 tons a year. This will make Cyprus self-sufficient in smelting and copper full mine costs are expected to be reduced by 5 cents per pound.
 Molybdenum markets remained weak during the second quarter. The Thompson Creek molybdenum mine in Idaho experienced a mine slide during the quarter, the effects of which are still being evaluated. The mine, however, continues to produce at a rate adequate to meet sales to Cyprus customers.
 For the first six months, Copper earned $46.4 million, compared with $70.1 million in 1991. The lower results were caused by lower realizations and the stockpiling of concentrates due to the Miami smelter fire. Copper concentrate production was essentially the same as last year.
 Coal second quarter earnings of $13.2 million were significantly better than second quarter 1991 breakeven earnings. In spite of continued weak coal markets, Coal earnings have increased as productivity improved by 20 percent and costs per ton were reduced by 10 percent over last year.
 Both the Emerald mine in Pennsylvania and the Plateau mine in Utah reported higher earnings as longwall productivity improved 30 and 25 percent respectively. In addition, maintenance and operating cost control programs improved earnings at the Kanawha mine in West Virginia. The Twentymile mine in Colorado also had better results due to improved productivity. As part of Cyprus' personnel reduction program, the Kentucky operations announced a layoff of 134 employees on July 17. Poor mining conditions have resulted in reduced earnings at the Shoshone mine in Wyoming. A United Mine Workers of America strike at the Empire mine in Colorado ended in April after nearly a year of negotiations, and the mine is operating at reduced production levels.
 Coal earnings for the first six months were $18.1 million, compared with first half 1991 earnings of $6.3 million. Other Minerals, which includes lithium, gold, talc, iron ore and exploration, reported a combined loss of $1.2 million in the second quarter, compared with a similar loss in the second quarter of 1991. Iron Ore lost $1.3 million, compared with a loss of $3.8 million in 1991. In June the Northshore iron ore mine in Minnesota temporarily shut down due to lower than expected sales. Lithium earned $4.8 million, about the same as last year. Gold lost $0.5 million because of higher unit costs related to start-up at the Golden Cross mine in New Zealand and higher costs of leaching oxide ore at Selwyn in Australia. Exploration expenses totaled $4.9 million for the quarter. The talc business was sold on June 30, 1992.
 Year-to-date earnings for Other Minerals were $7.0 million, compared with a loss of $1.9 million in 1991, primarily due to a lower iron ore loss.
 Corporate expenses for the second quarter were $10.8 million, compared with $9.1 million in 1991. Corporate expenses for the quarter were $2.6 million higher due to an accrual for stock appreciation rights caused by Cyprus' higher stock price.
 Interest, Equity, and Other had second quarter expenses of $5.0 million, compared with income of $0.9 million in 1991. The 1991 results included a $3.8 million pretax gain on the sale of a silver mine.
 Cyprus' balance sheet remains strong with debt as a percent of total capitalization of 19.3 percent and a ratio of current assets to current liabilities of 2.1 to 1. Cyprus paid dividends of 20 cents per share on common stock and $.9375 per share on preferred stock during the quarter.
 Milton H. Ward, Cyprus Mineral's chairman, president, and chief executive officer, said, "Cyprus Minerals has solid assets, and I believe that by reducing production costs, especially in copper and coal, it will be a better and more competitive company. Since my appointment as Cyprus' chief in May, I have traveled to our major copper and coal locations and talked at length with operating management to determine how best to intensify our efforts in reducing costs in these major businesses. Cyprus must work smarter and leaner. Decisive action in the coming months will demonstrate how this will be accomplished.
 "Economic recovery in the U.S. continues to fuel rising demand for copper. At the same time, Far Eastern markets are growing. Rising demand, shrinking inventories, the possibility of a smelting bottleneck in the next couple of years, and the potential for supply disruptions are combining to push copper prices higher. All of this will benefit Cyprus Minerals," Ward concluded.
 Cyprus Minerals, headquartered in Englewood, Colo., is a major producer of copper, coal, lithium, and molybdenum. Cyprus also produces gold, iron ore and zinc.
 CYPRUS MINERALS CO.
 Consolidated Statement of Income
 Three and Six Months Ended June 30
 (In Millions, Except Per Share Data)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenues $403.6 $412.8 $802.0 $831.4
 Costs and Expenses 781.8 387.6 1,183.8 774.2
 Income/(Loss) from
 Operations (378.2) 25.2 (381.8) 57.2
 Interest Income .6 1.2 1.5 2.6
 Interest Expense (5.2) (5.5) (10.5) (11.2)
 Capitalized Interest 1.2 1.4 3.1 1.7
 Equity Investments and Other (4.8) 3.8 (4.9) 3.5
 Income/(Loss) Before Income
 Taxes (386.4) 26.1 (392.6) 53.8
 Income Tax
 (Provision)/Benefit 94.4 (6.1) 95.6 (12.6)
 Net Income/(Loss) (292.0) 20.0 (297.0) 41.2
 Preferred Stock Dividends (3.7) (3.7) (7.4) (7.4)
 Income/(Loss) Applicable to
 Common Shares $(295.7) $16.3 $(304.4) $33.8
 Earnings/(Loss) per
 Common Share
 Primary $(7.56) $0.42 $(7.79) $0.87
 Fully Diluted $(7.56) $0.42 $(7.79) $0.87
 Excludes Second Quarter Write-downs and First Quarter
 Reorganization Expense
 Net Income/(Loss) 23.0 20.0 37.2 41.2
 Preferred Stock Dividends (3.7) (3.7) (7.4) (7.4)
 Income/(Loss) Applicable to
 Common Shares $19.3 $16.3 $29.8 $33.8
 Earnings/(Loss) per
 Common Share
 Primary $0.49 $0.42 $0.76 $0.87
 Fully Diluted $0.49 $0.42 $0.76 $0.87
 Weighted Average Common
 Shares Outstanding
 (In Thousands)
 Primary 39,111 38,994 39,077 38,974
 Fully Diluted 47,421 47,029 47,393 47,020
 Financial Summary by Business Segment
 Excludes Write-downs and Reorganization Expenses in Segments
 Three Months and Six Months Ended June 30
 (In Millions)
 (Unaudited)
 Three Months Ended June 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $212.3 $236.7 $32.4 $35.7
 Coal 108.5 109.0 13.2 0.1
 Other Minerals 82.8 67.1 (1.2) (1.5)
 Total $403.6 $412.8 44.4 34.3
 Corporate --- --- (10.8) (9.1)
 Interest, Equity and Other --- --- (5.0) 0.9
 Income/(Loss) Before
 Income Taxes --- --- 28.6 26.1
 Income Tax
 (Provision)/Benefit --- --- (5.6) (6.1)
 Subtotal --- --- 23.0 20.0
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- (315.0) ---
 Net Income/(Loss) --- --- $(292.0) $20.0
 Six Months Ended June 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $435.9 $485.7 $46.4 $70.1
 Coal 212.9 214.9 18.1 6.3
 Other Minerals 153.2 130.8 7.0 (1.9)
 Total $802.0 $831.4 71.5 74.5
 Corporate --- --- (17.4) (17.3)
 Interest, Equity and Other --- --- (7.7) (3.4)
 Income/(Loss) Before
 Income Taxes --- --- 46.4 53.8
 Income Tax
 (Provision)/Benefit --- --- (9.2) (12.6)
 Subtotal --- --- 37.2 41.2
 Write-downs & Reorg.
 Expense (Net of Tax) --- --- (334.2) ---
 Net Income/(Loss) --- --- $(297.0) $41.2
 Financial Summary by Business Segment
 Includes Write-downs and Reorganization Expenses in Segments
 Three and Six Months Ended June 30
 (In Millions)
 (Unaudited)
 Three Months Ended June 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $212.3 $236.7 $(34.1) $35.7
 Coal 108.5 109.0 (291.1) 0.1
 Other Minerals 82.8 67.1 (42.2) (1.5)
 Total $403.6 $412.8 $(367.4) 34.3
 Corporate --- --- (10.8) (9.1)
 Interest, Equity and Other --- --- (8.2) (0.9)
 Income/(Loss) Before
 Income Taxes --- --- (386.4) 26.1
 Income Tax
 (Provision)/Benefit --- --- 94.4 (6.1)
 Net Income/(Loss) --- --- $(292.0) $20.0
 Six Months Ended June 30,
 Sales Earnings from
 Revenues Operations
 1992 1991 1992 1991
 Copper $435.9 $485.7 $(28.0) $70.1
 Coal 212.9 214.9 (289.8) 6.3
 Other Minerals 153.2 130.8 (34.5) (1.9)
 Total $802.0 $831.4 $(352.3) 74.5
 Corporate --- --- (29.5) (17.3)
 Interest, Equity and Other --- --- (10.8) (3.4)
 Income/(Loss) Before
 Income Taxes --- --- (392.6) 53.8
 Income Tax
 (Provision)/Benefit --- --- 95.6 (12.6)
 Net Income/(Loss) --- --- $(297.0) $41.2
 Key Operating Data
 Three and Six Months Ended June 30
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Sales Volume
 Copper (Millions of Lbs.) 182 195 380 377
 Produced Copper
 (Millions of Lbs.) 134 175 264 331
 Molybdenum (Millions of Lbs.) 8 10 17 23
 Coal (Millions of Tons) 4 4 9 8
 Lithium (Millions of Lbs.
 Carbonate Equiv.) 8 7 16 16
 Talc and Barite
 (Thousands of Tons) 135 137 273 263
 Gold (Thousands of Ounces) 55 45 105 78
 Iron Ore (Thousands of
 Long Tons) 562 235 705 432
 Average Realization
 Copper ($/lb.) $1.03 $1.04 $1.02 $1.07
 Gold ($/oz.) $371 $381 $367 $390
 Full Mine Cost
 Copper ($/lb.) $0.77 $0.78 $0.79 $0.79
 Consolidated Balance Sheet
 (In Millions)
 June 30, Dec. 31,
 1992 1991
 (Unaudited) (Audited)
 ASSETS
 Cash and Equivalents $39.3 $79.0
 Accounts and Notes Receivables, Net 152.9 132.3
 Inventories 339.2 324.2
 Prepaid Expenses 45.0 42.0
 Total Current Assets 576.4 577.5
 Properties - At Cost, Net 961.7 1,330.4
 Investments & Other Assets 101.6 57.8
 Total Assets $1,639.7 $1,965.7
 LIABILITIES and SHAREHOLDERS' EQUITY
 Current Liabilities $271.9 $278.8
 Long-Term Debt 232.9 239.2
 Deferred Income Taxes 19.2 65.2
 Other Noncurrent Liabilities and
 Deferred Credits 139.4 92.1
 Total Shareholders' Equity 976.3 1,290.4
 Total Liabilities and
 Shareholders' Equity $1,639.7 $1,965.7
 Working Capital Ratio 2.1 2.1
 Debt as a pct. of Total Capitalization 19.3pct. 15.6pct.
 -0- 7/22/92
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM) CO: Cyprus Minerals Co. ST: Colorado IN: MNG SU: ERN


MC-BB -- DV013 -- 1999 07/22/92 14:05 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1992
Words:2250
Previous Article:UNION CARBIDE DECLARES 301ST CONSECUTIVE DIVIDEND
Next Article:KAMAN REPORTS SECOND QUARTER, SIX MONTHS RESULTS
Topics:


Related Articles
CYPRUS MINERALS REPORTS 1991 EARNINGS OF $42.7 MILLION
CYPRUS MINERALS TAKES $315 MILLION AFTER-TAX CHARGE ON COAL, STEEL RELATED BUSINESSES
CYPRUS MINERALS REPORTS A 36 PERCENT INCREASE IN THIRD QUARTER 1992 EARNINGS
CYPRUS MINERALS REPORTS 1992 EARNINGS OF $92.5 MILLION BEFORE SPECIAL CHARGES OF $426.1 MILLION
CYPRUS MINERALS REPORTS SECOND QUARTER EARNINGS OF $82 MILLION
CYPRUS AMAX MINERALS REPORTS SECOND QUARTER EARNINGS OF $32 MILLION
CYPRUS AMAX MINERALS REPORTS THIRD QUARTER EARNINGS OF $48 MILLION
CYPRUS AMAX MINERALS REPORTS RECORD SECOND QUARTER EARNINGS OF $134 MILLION, UP 319 PERCENT FROM 1994 SECOND QUARTER
CYPRUS AMAX MINERALS REPORTS THIRD QUARTER EARNINGS OF $135 MILLION, OR $1.41 PER SHARE, BEFORE PREVIOUSLY ANNOUNCED WRITE-DOWNS
/C O R R E C T I O N -- Cyprus Amax Minerals/(Correction Notice)

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters