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Additional Information
Market: TSX
Sector: Chemicals
EPIC: NEM
Latest Price: 8.69  (0.70% Ascending)
52-week High: 10.55
52-week Low: 5.90
Market Cap: 1,042.59M
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Neo Material Technologies
www.amr-ltd.com

Neo Material Technologies is a producer, processor and developer of neo powders, rare earths and zirconium-based engineered material and applications.

Full Neo Material Technologies profile here
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Neo Material Technologies posts record Q2 2010 earnings, though maintains caution for future quarters

12th Aug 2010, 6:57 pm
Neo Material Technologies posts record Q2 2010 earnings, though maintains caution for future quarters

Toronto-based rare metal and magnetic powder producer Neo Material Technologies Inc. (TSX: NEM) has announced its financial results for the three months ending 30 June 2010, posting record earnings with net income at $16.0 million, earnings per share of $0.13 and EBITDA of $22.5 million. This compares to second quarter 2009 net income of $4.8 million, earnings per share of $0.04 and EBITDA of $7.8 million.


Revnues were also at an impressive $79.2 million compared to $41.8 million in the corresponding period in 2009. This improvement is an indication of its steady improvement from 2009, the company said.  Revenues for the six months ending June 30 were $144.3 million compared to $70.5 million for the same period in 2009.

While Neo Material enjoyed strong growth in the first half of the year, the company is cautious for the next few quarters, as it does not expect the rate of growth over 2009 to continue at the same strong pace as in recent quarters, said president and CEO Constantine Karayannopoulos.

"Notwithstanding the recent announcement regarding Chinese rare earth export quotas, our businesses continue to demonstrate strength while we continue to add capabilities to our rare metals platform as we build a stronger and more diversified Neo Materials for the future," she added.

At the end of the quarter, the company had a cash balance of $66.3 million and long-term debt of $844,000. The last quarter also saw Neo Material complete the acquisition of Buss & Buss Spezialmetalle GmbH, as well as aquire a 19.5% stake in Atlantic Metals and Alloys, a Connecticut-based specialty materials trading company. It also paid down debt and acquired 253,700 common shares.

Operating income increased by 270% to a record $19.6 million, compared to $5.3 million in the corresponding period in 2009.

Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium-based engineered materials and applications, as well as other rare metals and their compounds through its magnequench and performance materials business divisions.

Its products are essential to many of today’s high technology products, including computers, TV panel displays, cell phones, micro motors, precision motors and other applications requiring high levels of magnetic strength, flexibility, compactness and weight.  The company has approximately 1,300 employees in 15 locations across 10 countries.

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