The results, which were dampened by lower mine production, were below forecasts by two Peruvian banks and one U.S. investment bank polled by Reuters, which predicted profits of between $535 million and $752 million.
The company's profits for the first nine months of 2006 rose to $1.4 billion, or earnings per share of $4.69, compared with $979.7 million, or $3.33 per share, in the same period of 2005.
Southern Copper
The company said third-quarter earnings per share rose to $1.77, compared to $1.25 per share for the same period a year 2005, despite lower metals output.
"This increase was due principally to higher copper, silver and zinc prices," Southern Copper said in a statement.
London Metal Exchange (LME) and New York Commodity Exchange (COMEX) copper prices averaged $3.48 and $3.54 a pound respectively in the third quarter, compared with an average of $1.70 a pound in the third quarter of 2005, the company said.
That price increase made up for a fall in SCC's copper and zinc output in the quarter.
Copper output fell 21 percent to 311.5 million pounds in the third quarter, mainly due to a decrease in production in Mexico, where a labor dispute caused the temporary closure of the La Caridad pit.
La Caridad will be back at full production in the fourth quarter, SCC said.
Zinc production fell 0.5 percent to 81.1 million pounds in the third quarter due to lower ore grades, SCC said.
"We will restore 100 percent of the zinc production at the San Luis Potosi zinc refinery by the end of October," the company added.
Net sales in the third quarter rose 37 percent to $1.4 billion compared with the same period a year ago. Net sales in the first nine months rose 30 percent to $3.8 billion compared to the year-earlier period.
Shares of Southern Copper rose 0.32 percent to $52.66 in New York in morning trade. Shares in Lima were unchanged at $52.40 a share.
No comments:
Post a Comment