With consolidated 1989 earnings of $214.6 million, Cominco (TSE) slightly exceeded the record earnings of $213.5 million set in 1988 before extraordinary earnings. (After including extraordinary items of $28.5 million, Cominco’s net earnings in 1988 were $242 million.) After providing for dividends on preferred shares and before extraordinary items, earnings for the year ended Dec. 31 were $2.64 per common share, compared with earnings of $2.56 per common share in 1988. The company’s sales for the year were $1,591.3 million, compared with sales of $1,660.4 million in 1988.
The Metal and Integrated Metals business segment reported an operating profit of $407.9 million, down slightly from the profit of $414.2 million in 1988.
Cominco said earnings from Trail Metals, the Polaris mine and from sales of remaining Pine Point inventories were higher in 1989 than in the previous year. Sullivan mine production and profits, however, fell sharply as did the Highland Valley Copper contribution. This was attributed to lower metal prices, an illegal strike at Sullivan, and a legal strike at Highland Valley. Earlier this year, Cominco announced it was closing the Kimberley operations (Sullivan) for an indefinite period because of declining zinc prices, high production costs and low productivity.
Cominco’s fertilizer division had an operating profit of $38.2 million, compared with a profit of $48.4 million in 1988.
Cominco’s total debt at year-end (which includes $237.3 million borrowed for the Red Dog mine project in Alaska) was $468.6 million, some $124.6 million above the level at the end of 1988. Cominco (TSE)* Year ended Dec. 31 1989 1988 Revenue (000s) $1,591,300 $1,660,400 Net earnings (000s) $21.4, 600242,000 Net earnings
(per share) $2.64 $2.92
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