Fall 2011 jim love adms 1010 10 history henry wingate

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Unformatted text preview: nickel •  Inco was once one of Canada’s most important companies – a cultural icon and at one point the only Canadian company to be listed on the Dow 30 •  1970 to 2000 – Guatemala, Indonesia, New Caledonia, Australia, Minnesota •  Post 2000 Voisey’s Bay Fall 2011 2005 – bidding wars Inco aeempt to buy Falconbridge Tech bids for Inco Xstrata buys Falconbridge Phelps Dodge, Inco and Falconbridge •  2006 Inco is bought by CVRD – a Brazilian miner of iron ore •  •  •  •  •  Jim Love ADMS 1010 9 Why? Fall 2011 Jim Love ADMS 1010 10 History •  Henry Wingate is Chairman and CEO of INCO from 1960 •  Chosen successor is Albert Gagnebin to succeed James Roycrol Gordon (first Canadian- born president) •  Board names Edward Grub to succeed Wingate Fall 2011 Jim Love ADMS 1010 11 1971 •  1969 was a terrible year –  Poor labour rela>ons –  Four month strike – 17,000 workers with United Steelworkers’ •  Turnaround in 1970 –  Nickel produc>on up –  Capital improvements •  1971 brought more bad news –  Nickel demand slumped (500 million pounds to 382 million pounds) –  Sales dropped 25 per cent –  Profits cut in half •  No longer a “blue chip” company Fall 2011 Jim Love ADMS 1010 12 The Mighty Fall •  Inco takes 80 percent of the decline •  Supplier of last resort •  Falconbridge and smaller compe>tors faired beeer •  Growth in producers of refined nickel •  Grub is in cost cuong mode versus Wingate and Thompson’s “exuberance” Fall 2011 Jim Love ADMS 1010 13 History •  WWII to...
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