OCR Text |
Show l-ftxosgulf Lists tunings For First Half of 1975 t ?"vnJ4urlrr..Ml.it v ', Income ,l,r SV,Ul v j' v)'S amounted to ftWocSS-'P" share. ri to JJ-U-,-.0lK) or Irt in II ,nJ l'l",rU'r ,"NS amounted to SKVS.- in the second quarter ' ' Sflimvnio for the first six lhs .mounted toS I7J.-w I7J.-w $1.80 p share. .jj per shire in the first halt -2iin the first half of ITS ;3 $.M..M5.000 for the fr.oJayearaso. . The principal causes for the linein famines for the first w months of IS ere h-"rtjuoed h-"rtjuoed demand for and the :W prices of metals. Copper '.erased Ti rents per ;'LnJ during the first halt of nd averages slightly "irthan the current price of Scents p- r pound during the '-first sU months of ITS. Two "frtduoers have recently reduc-their reduc-their prices to 00 cents per irounJ. i move which most . pwducers including Texasgulf Urt not followed. Sales of me"1 hlve bet,n ,ess ,hn of the 1T4 rate because :. lit automotive and construc-mi construc-mi industries were depressed the first half of 1975. ..'lithough the price has remained remain-ed suble at 39 cents per c' pound. A port strike at Quebec - City prevented shipping any iuc concentrates in the export nurlet until late in the first ,kjjf of 19"5. Partially offsetting offset-ting the metals decline were improved sales and operating "income for the Chemicals . Division during early 1975. .Profits from affiliates increas-i ed due t.i hifjlu-r sulphur aiul lion oie piues and increased volume. I amines ilmiug the seeoml quarter of ll)7S compared to the second quarter of 1074 weie lower because copper pi ices weie almost 20 cents per pound lower in the second quarter of 1975 tlunt in the second quarter of 1474. Also earnings were lower because of reduced quantities of zinc metal sold and the late start in exporting inc concentrates. In addition in the second quarter ot 19S revenues from sales of certain fertilizer products in the export market were lower. It has become apparent that some buyers of metals and fertilizer products in 1974 bought supplies in excess of actual requirements, and that reduced sales in 1975 are attributable in part to consumer consum-er inventory reductions during the last six months with a corresponding increase in Texasgulf Tex-asgulf inventories. Income taxes for the six months and the second quarter of 1975 include all taxes at an estimated annual effective rate of 40 per cent compared to 45.7 per cent used in the first six months of 1974. The reduced rate at w hich income taxes are being provided for in 1975 reflects the lesser proportion propor-tion of overall income in 1975 w hich is subject to the higher Canadian income taxes. Also, a lesser proportion of income is subject to the Ontario Mikning Tax because of the increased processingd allowance allow-ance due to the major additional capital improvements improve-ments currently being made at the Kidd Creek Mine. Changes in the Canadian lederal aiul provincial tax laws weie proposed dining the second quarter of 9. A charge of Sti, (.00, 000, reflecting reflect-ing such increased taxes for the fust six month period of 1974, was made in the second quarter, 1974. resulting in the 49 H n.-r cent tax rale used in that quarter. I exasgull remains confident thai the long range demand for all of its products will continue strong. Plans to expand production of all of Ihe company's natural resources J are continuing. |