Inco's earnings triple

Inco's earnings triple

JAKARTA (JP): The unaudited net earnings of PT International
Nickel Indonesia (PT Inco) tripled to US$25.8 million, or 10
cents per share, in the first quarter of this year, up from $8.7
million, or three cents per share, for the same period of last
year.

The company reported Thursday that the increase in the net
earnings was a result of higher nickel price realizations, which
averaged $3.11 per pound in the January-March period.

The company's average realized prices in the first and fourth
quarter of 1994 were $2.02 per pound and $2.43 per pound.

The company, which sells nickel in matte under long-term
contracts, determines the selling price of its product by a
formula based on the London Metal Exchange cash price for nickel.

Due to the mining of lower ore grades, however, the production
of nickel in matte dropped from 25.4 million pounds (11,500 tons)
in the first quarter of 1994 to 24.4 million pounds in the fourth
quarter of 1994, and down further to 23.5 million pounds in the
first quarter of 1995.

It announced two weeks ago its plans to increase its
production capacity by 50 percent to 150 million pounds this
year.(32)