Imco Ups Its Earnings

Imco Recycling Inc., Irving, Texas, has announced that its previously announced net earnings for the fourth quarter and full year of 2003 have been revised upward.

In early February, the company reported net earnings of $456,000 or $.03 per share for the fourth quarter of 2003 and net earnings of $3.9 million or $.26 per share for the full year of 2003.

But just a few days later, a German subsidiary, VAW-IMCO, repaid an intercompany loan, realizing a transaction gain due to changes in the currency exchange rates between the Euro and the U.S. dollar. FASB Financial Standard No.52 “Foreign Currency Translation,” requires that the portion of the gain that occurred in the fourth quarter of 2003 be included in that period’s results.

Because of the new $1.0 million gain, or $.07 per common diluted share after tax, the company’s fourth quarter 2003 net earnings were $1.5 million or $.10 per share. For the full year of 2003, net earnings grew to $5.0 million or $.33 per share.