General recessionary pressures including lower prices for aluminum, gold and oil resulted in a 36% drop in first quarter earnings for Amax Inc. (NYSE).
The New York company recorded net earnings of US$32 million or 37 cents a share in the three months ended March 31 compared with earnings of US$50 million or 57 cents a share in the same period last year.
However, first-quarter revenues increased slightly to US$928.4 million from US$927.9 million in the 1990 period. Results for the first three months of 1991 include $19.4 million in after-tax earnings from long-term coal contract settlements.
“Earnings were impacted by general recessionary pressures and lower prices for all our products in the first quarter,” said Amax Chairman Allen Born. Having invested US$1.4 billion to expand its various operating divisions, the company is poised to benefit from any economic upturn in 1991, Born said.
The company expects to spend US$1 billion this year to further expand its businesses which included wholly owned Alumax Inc., the third largest integrated aluminum company in the U.S. Amax also holds an 87% stake in Amax Gold (TSE) of Colorado. Amax Inc. (TSE)* 3 months ended Mar. 31 1991 1990 Revenue $928,400 $927,900 Net earnings 32,000 50,000
per share 0.37 0.57
Be the first to comment on "Amax earnings down 36%"