Inco Ltd. reported adjusted net earnings of $16 million for the third quarter of 2003, compared with adjusted net earnings of $52 million for the third quarter of 2002.
Adjusted net earnings for the first nine months of 2003 were $142 million, compared with adjusted net earnings of $142 million in the corresponding 2002 period.
Net earnings for the first nine months of 2003, in accordance with Canadian GAAP, were $63 million compared with a net loss of $1.480 billion in the corresponding period.
Strong underlying market fundamentals helped to drive nickel prices higher in the third quarter, with global production unable to keep pace with demand growth. The resulting tight market conditions, reductions in reported producer inventories and lower consumer inventories prompted the release of material that had been pledged by a Russian producer to secure a loan, thereby enabling supply to keep pace with demand.
In its quarterly report, the company added that it felt that the ongoing increase in demand for stainless steel in China is driving large expansions in world stainless steel capacity and production, and is pushing world nickel demand to new highs.