PT.Inco?s Q1 earnings down on lower sales

Sulawesi nickel miner PT.International Nickel Miner Indonesia (PT.Inco) reported on Wednesday unaudited net earnings of US$50.9 million ($0.05 per share) in the first quarter of 2005, 31 percent down from previous year?s corresponding period net earnings of $73.4 million ($0.07 per share) due to falling sales volume which fell by 11percent to $170.9 million from $191.9 million.

The company said the decrease on earnings and sales were mainly due to the delay of timing of one of its March shipment, lower rainfall rate and lower nickel-in-matte prices.

Production of nickel-in-matte for the first quarter of 2005 was 38.1 million pounds versus 36.0 million pounds in corresponding 2004 period while realized price for first quarter of 2005 was $5.15 per pound versus $5.27 per pound in a year ago corresponding period.

Despite the decrease, PT.Inco President and CEO Bing Tobing said the company was still on track to meet 2005 production of 160 million pounds of nickel-in-matte. ?We expect delayed shipment to be made in late April; and with higher recent rainfall, reservoir dam at PT.Inco?s hydroelectric facilities are returning to normal,? he said in a statement.

PT.Inco, which is listed at The Jakarta Stock Exchange, is a subsidiary of Canadian nickel miner Inco Limited. (alex)