Drop in nickel prices hurt Inco

A decrease in Inco’s (TSE) income for the year ended Dec.31 was mainly the result of lower realized nickel prices, the company says. In 1990, nickel prices averaged US$4.10 compared with US$5.61 in 1989. Inco’s annual earnings dropped to US$441.2 million (US$4.18 per share) in 1990 from US$753.4 million (US$7.11 per share) the year before. Other reasons for the decline include higher production costs and lower nickel deliveries, the company says. An increase in production costs resulted from lower ore grades, reduced production volumes, and higher employment and supply costs.