PT. Inco's Q4 net falls 11% on higher costs

PT International Nickel Indonesia, a unit of Inco Ltd., the world's second-biggest nickel miner, said fourth quarter profit fell 11 percent as costs soared and nickel prices dropped.

Profit in the quarter ended Dec. 31 fell to US$54.56 million, or 5 cents a share, from $61 million, or 6 cents, a year earlier. Sales climbed 22 percent to $232 million, the company said today on its Web site.

Indonesia in October ended fuel subsidies, which pushed up transportation costs 45 percent from a year ago. The company's costs of sales, including fuel costs, rose by half to $137.2 million. It fetched $4.51 for every pound of nickel it sold in the fourth-quarter, compared with $4.93 a pound a year earlier.

International Nickel's full-year profit rose 5.5 percent to $268.9 million, or 27 cents a share, from $284.4 million, or 29 cents a share, in 2004. Sales rose 12 percent to $885.1 million.

The company exceeded its production forecast of 160 million pounds of nickel, lifting 2005 production 6 percent on year to 168.4 million pounds, the statement said.

It fetched $5.20 a pound of nickel in 2005, compared to $4.88 a pound in 2004.(*)