Printer Friendly

NORD RESOURCES CORPORATION ANNOUNCES FIRST QUARTER 1992 RESULTS

 NORD RESOURCES CORPORATION ANNOUNCES
 FIRST QUARTER 1992 RESULTS
 DAYTON, Ohio, May 14 /PRNewswire/ -- Nord Resources Corporation (NYSE: NRD) announced results of operations for the first quarter ended March 31, 1992. A net loss of $2.2 million, or $.15 per share, was realized in the first quarter of 1992 compared to a net loss of $2.0 million, or $.13 per share, in the first quarter of 1991.
 Revenues for the first quarter of 1992 decreased to $20,743,000, compared to the first quarter 1991 revenues of $28,420,000.
 Although total revenues decreased in 1992 compared to 1991, revenues from the kaolin segment increased to $7,599,000 in 1992 compared to $6,353,000 in the first quarter of 1991. This increase was due primarily to higher levels of Norcal(TM) sold in 1992. Also, Norplex(R) sales in the first quarter of 1992 were above sales levels in the first quarter of 1991; however, they are still not at levels to have a significant impact on operating results. Costs associated with the plant expansion and new product development and introduction continue to adversely impact operating results in the kaolin segment.
 The rutile segment revenues in the first quarter of 1992 were $12,276,000 compared to $20,082,000 in 1991. This decline was due to fewer tons sold and a 15 percent decrease in average sales prices in 1992 compared to 1991. Lower average prices are expected to continue throughout 1992 compared to 1991 prices; however, tons sold and operating earnings are expected to improve during the second half of 1992. Late in the first quarter of 1992, the rutile segment completed the move of the dredging operations to the new Lanti deposit, where it is now operating. This move involved 29 days of curtailed production during the first quarter of 1992. However, because of the higher ore grade and corresponding mineral recovery in this new deposit, it is anticipated that average cost of production in 1992 will improve over 1991 levels. Additionally, decreased fuel costs benefitted production costs in the first quarter of 1992 compared to 1991.
 Also affecting the first quarter of 1992 compared to the first quarter 1991 were (1) cost containment measures and a decrease in legal expense resulting in lower selling, general and administrative expenses of $745,000, (2) lower interest expense of $227,000 due to higher capitalized interest, (3) and lower income taxes of $340,000 due to lower revenues and earnings at the rutile segment.
 Recent operating losses and a slow worldwide economic recovery continue to adversely impact the company's short-term liquidity. This situation is expected to improve during the second half of 1992 as revenues from the rutile segment are expected to increase over levels in the first half of 1992. The company is continuing its limitations on capital expenditures and is emphasizing cost containment in all segments. Also, a number of alternatives are being evaluated by the company to supplement its cash position such as additional financing into the rutile segment. As announced in April, International Finance Corporation, a member of the World Bank Group, approved a loan of up to $20 million to Sierra Rutile Limited, Nord's wholly owned rutile operation. The IFC loan represents the final step in a total financing package in the amount of approximately $48 million with international development banks. These commitments are subject to negotiations and clarification of certain issues, preparation of definitive agreements and obtaining required consents from third parties. Additionally, possible joint venture opportunities involving the kaolin segment are being evaluated.
 A consolidated statement of operations follows:
 For the Quarter ended March 31, 1992 1991
 Revenues $20,743,000 $28,420,000
 (Loss) from continuing
 operations ($2,225,000) ($1,422,000)
 (Loss) from discontinued
 operations --- (559,000)
 Net (Loss) ($2,225,000) ($1,981,000)
 Net (Loss) per share:
 From continuing operations ($.15) ($.09)
 From discontinued operations -- ($.04)
 Net (Loss) ($.15) ($.13)
 Average Shares Outstanding 15,120,000 15,082,000
 Nord Resources Corporation is a major producer of kaolin and natural rutile (a premium titanium dioxide mineral), and holds a significant interest in Nord Pacific Limited, a company engaged in the exploration for and development of precious, strategic and base metals.
 -0- 5/14/92 R
 /CONTACT: Terence H. Lang, Senior Vice President - Finance, or Susan Shahan, Director of Shareholder Relations, both of Nord Resources Corp., 513-433-6307/
 (NRD) CO: Nord Resources Corporation ST: Ohio IN: MNG SU: ERN


KK -- CL006 -- 0545 05/15/92 07:29 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:May 15, 1992
Words:752
Previous Article:JUDGE CONFIRMS NINTENDO JURY VERDICT; ENTERS COMPLETE JUDGMENT FOR NINTENDO
Next Article:SPECIAL VALUE FOR DELECTABLE DINING IN ICELAND DURING SUMMER
Topics:


Related Articles
NORD SUBSIDIARY ARRANGES FINANCING FROM COMMONWEALTH DEVELOPMENT CORP.
NORD RESOURCES CORPORATION ANNOUNCES FOURTH QUARTER/YEAR END 1991 RESULTS
NORD RESOURCES CORPORATION ANNOUNCES SECOND QUARTER 1992 RESULTS
NORD RESOURCES REPORTS THIRD QUARTER RESULTS
NORD RESOURCES CORPORATION ANNOUNCESFOURTH QUARTER/YEAR END 1992 RESULTS
NORD RESOURCES CORPORATION ANNOUNCES 1993 SECOND QUARTER RESULTS
NORD RESOURCES CORPORATION 1993 THIRD QUARTER RESULTS
NORD RESOURCES CORPORATION ANNOUNCES FIRST QUARTER 1994 RESULTS
NORD RESOURCES CORPORATION ANNOUNCES 1995 FIRST QUARTER RESULTS
NORD RESOURCES CORPORATION ANNOUNCES 1996 SECOND QUARTER RESULTS

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