Business
WGI Heavy Minerals Announces Fourth Quarter and 2009 Earnings
WGI Heavy Minerals Announces Fourth Quarter and 2009 Earnings
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\nCOEUR D'ALENE, ID', Mar. 12, 2010 (Canada NewsWire Group) -- /CNW/ -- WGI Heavy Minerals, Incorporated (\"WGI\") (TSX: WG) today reported fourth-quarter earnings of $0.01 per share ($0.13 million), compared to a loss of ($0.15) per share ($3.65 million) in the same period last year. Full year 2009 earnings of $0.04 per share ($0.89 million) were the highest in the Company's last 10 years before extraordinary items such as the sale of its Indian asset in 2008 in which the Company earned $0.24 per share ($5.63 million).OverviewDiscipline and hard work marked a year of change for WGI in 2009. During the last 10 years WGI was a company losing money year over year on an operational basis. In 2009 WGI generated an operating profit of $0.89 million or 3 percent of sales. The improvements were the result of reduced operating costs resulting in improved gross margins and an 11 percent reduction in selling, general and administrative expenses. These improvements were not by chance, but rather came about through the hard work and dedication of every employee at WGI. Administrative costs were reduced through staff reductions, wage freezes, elimination of wasteful spending and the reduction in travel and entertainment expenditures. Management held capital and exploration expenditures to sustainable levels while the Company proved it could operate profitably across all operations.\"We set out in 2009 to re-align the Company along functional lines of operation and position the Company to return sustainable operating profits on an ongoing basis\", said Greg Emerson President and CEO. \"The Company's worldwide business is now organized into two major segments, abrasive minerals products, and aftermarket replacement parts for ultrahigh pressure waterjet machine cutting systems to more accurately reflect that the Company now makes decisions on a global basis regarding its products and services. With this realignment in place our team achieved a 5% return on equity. Our mining operation returned to profitability in 2009 and is now looking to strengthen its resource base. Our trading business units located in Idaho and Germany focused on expanding our customer base as well as supplying quality products to customers looking for good product at fair prices during a global economic downturn. Our sales groups added new warehouses and stocked tho...