Mining giants report net profit gains.

• Author: Gouliquer, Dianne
• Position: Brief Article

Both of Northen Ontario's base metal mining giants reported significant third-quarter improvements over same period last year.

For a fourth consecutive quarter, Inco Ltd. is enjoying. improved metal prices and solid earnings and cash flows. The company recently announced a net profit of $79 million (US) on net sales of $642 million for the third quarter of 2000. The company's net profit in the third quarter of last year was $7 million.

A spokesperson with the United Steelworkers of America says it is possible a strong fourth quarter will lead to a half billion dollars in annual profits for the mining giant, even with three-week shut-downs at some Canadian operations and an ease in nickel prices over the summer.

The company's success will also be enjoyed by its Sudbury workers, who earlier this year negotiated a new profit-sharing plan as part of a three-year collective agreement. Under the contract, in each profitable quarter, the so-called earning-based compensation plan provides a premium for every hour worked during the quarter including overtime.

Third-quarter earnings dropped from Inco's second quarter results of $148 million, which were boosted by an deferred tax benefit of $38 million, and some industry analysts are saying Inco's financial performance is lacking.

Meanwhile, Falconbridge Ltd. has announced its third quarter earnings for the period ending Sept. 30, and the results show a substantial increase over numbers from the same time a year ago.

The company reports consolidated earnings of $91.6 million...