Noranda Reports First Quarter Loss

Noranda Inc. reported a first quarter loss of $29 million before a previously- reported after-tax restructuring charge of $30 million related to the company's magnesium plant shutdown. The net loss is $59 million. The company reported earnings of $8 million for the same period in 2002.

"On an operating basis, Noranda's results are beginning to benefit from the restructuring and cost containment measures taken over the last eighteen months," said Derek Pannell, Noranda's president and CEO. "We are working to find a solution to the Horne labor strike so that similar profitability improvements can be applied to the Canadian Copper and Recycling business unit."

Higher revenues from improved metal prices were offset by the stronger Canadian dollar versus the U.S. dollar as well as the strike at the Horne smelter. Operating costs decreased by approximately $29 million compared to the first quarter last year. Increased costs related to energy prices and the ramp-up of the Phase III expansion at the Altonorte smelter were more than offset by the CEZ refinery sale and Gaspe smelter shutdown.

The cost to purchase raw materials was lower in the period reflecting a lower level of purchases on account of the strike at the Horne smelter and the closure of Gaspe.

The Canadian Copper and Recycling business produced an operating loss of $22 million in the quarter compared to a loss of $13 million in the comparable period of 2002.