Inco's profit fell in third quarter
Inco's profit fell in third quarter
JAKARTA (JP): The consolidated net profit of publicly-listed
PT International Nickel Indonesia (Inco) fell 55 percent in the
third quarter this year to US$14.5 million from $31.6 million in
the same period of 1995.
Inco announced yesterday its net income per share dropped to
12 U.S. cents for the July to September period of this year from
22 cents in the corresponding period of 1995.
The company's consolidated net profit for the first nine
months of this year plunged 35 percent to $54 million, or 22
cents per share, from $70.6 million or 28 cents per share in the
same period of 1995.
The sharp drop in profits in the first nine months of this
year were mainly caused by lower nickel prices, less deliveries
and increased production costs, Inco said.
The company sold its nickel in matte for $2.63 a pound on
average in the third quarter of 1996, compared with $3.03 a pound
in the corresponding period of 1995.
In the first nine months of 1996, the company sold it for
$2.77 a pound on average, compared with $2.95 a pound in the
corresponding period of 1995.
The company sells its nickel in matte, an intermediate product
sold under long-term contracts, for a price determined by a
formula based on the London Metal Exchange's cash price for
nickel.
Inco said it produced 23.7 million pounds of nickel in matte
in the third quarter of 1996, compared to 23.4 million pounds in
the third quarter of 1994.
Higher oil and supplies prices pushed up production costs in
the third quarter this year.
The company said it expected to lose about six million pounds
of nickel in matte production in 1996 because of an eruption in
one of the company's three electric furnaces.
An eruption in Furnace No. 3 on Sept. 10, 1996, killed an
employee working nearby.
The company said a team of PT Inco staff and consultants in
electric furnace design, operation and related-disciplines were
investigating the incident and implementing a program to assure
that the existing furnaces were safe.
Repairs to Furnace No. 3 are continuing. It is expected to be
operating in December, and running at a full capacity in January
next year. (hen)