OCR Text |
Show TGS Net Income Drops During Past Year Texas Gulf Sulphur Co. reported re-ported last wick that income for 107 1 amounted to $25.-!i.0OO $25.-!i.0OO before an extraordinary extraordin-ary charge of $4,675,000 re-Iating re-Iating to unusable mining equipment due to changes in mining metlnxls at Cane Creek near Moab, after applicable ap-plicable income taxes. Net income amounted to $20,531.-000 $20,531.-000 which compares with n'-t income for 1970 of $45,823,000 Trie income before extraordinary extraor-dinary charge is equivalent to S3 cenls per share in 1971 compared with $1.51 per sham in 1970. Sales, less zinc and lead smelting and refining charges, charg-es, for 1971 were $2I7.699.0oO compared with $219,459,000 the previous year. Several important factors caused the reduction in earnings earn-ings for 1971. Lower prices for sulphur and metals were the largest negative factors, and expanded exploration programs pro-grams generated charges of $11,641,000 in 1971 compared with $3,960,0 0 0 in 1970. Interest Inter-est cc-sts on increased debt 'were also up. These factors were partially offset by lower taxes due to lower income, certain carry-forward benefits bene-fits of foreign credits and lower Canadian tax rates. The financial effect of the proposed settlement in the Federal Court in New York on stockholder litigation is Hot reflected in the above .data. This charge will adjust prior year () earnings in the amount ( I ' $1,073,000 after af-ter tax benefit. |