The world's second largest nickel miner, Inco, has reported adjusted net earnings of $251 million for the fourth quarter of 2004, up from $123 million for the same period in 2003.

The Canadian firm produced 83,000 ounces of platinum group metals in the fourth quarter, on top of 146 million pounds of nickel and 69 million pounds of copper.

However, production levels are expected to drop over the coming twelve months due to a number of maintenance shut-downs.

Inco explained that output of pgms in 2005 is expected to drop to 370,000 troy ounces, down from 422,000 last year.

Nickel production is also forecast to fall from a record 522 million pounds in 2004 to between 490 and 500 million pounds in 2005, with copper production expected to drop to 250 million pounds from 274 million.

Chief executive Scott Hand described the year as "great" with production, net sales and cash flow the highest ever recorded by the miner.

"We anticipate another year of strong earnings and cash flow in 2005, although our 2005 production will be lower due to planned maintenance shutdowns that were not required in 2004," he added.