Inco?s net income plunges to $9.3m in 2001

PT International Nickel Indonesia?s net income plunged to US$9.3 million in 2001 or $0.04 per share from $80.5 million or $0.32 per share in the previous year due to the sharp drop in nickel prices in the world market during the year.

The low realization of nickel prices caused a sharp drop on total sales to $296.4 million in 2001 from $401.6 million in 2000.

The poor performance was recorded in the fourth quarter of this year during which the company suffered a loss of $8.01 million. In the same quarter 2000, the company booked a net profit of $16.93 million.

Inco said that sales dropped to $55.92 million during the October ? December period, 2001 from $100.8 million during the same period last year.

Inco?s president Rumengan Musu said that although the company booked a lower profit, its cashflow was still healthy enough to settle its debts which amounted to $104.9 million.

In 2001, total nickel production rose to 62,600 tons from 59,200 tons in 2000, but realized prices fell to $4,836 per ton last year from $6,774 per ton in the previous year. (*)