In terms of divisional earnings, minerals fell to third place last year behind forestry and manufacturing for the diversified resource giant Noranda (TSE). Noranda Minerals reported lower earnings of $150 million last year compared with $203 million in 1988. The minerals division had lower earnings, despite high base metal prices, because of production shortfalls at the company’s copper- zinc mining and metallurgical operations.
High levels of fixed costs at Noranda’s mining and smelting operations caused the production shortfalls to have a particularly adverse impact on the company’s bottom line — about $125 million after taxes.
The top-ranking Noranda Forest division led 1989 earnings by contributing $207 million while Noranda Manufacturing ranked second with earnings of $159 million. Fourth place went to Noranda Energy with improved earnings of $45 million last year.
In 1988 Noranda Minerals ranked second after Noranda Forest, the largest contributor to the company’s earnings in both of the last two years.
Be the first to comment on "Minerals rank third in Noranda earnings"