Business
WGI Heavy Minerals Announces Increased Revenue Growth for 2011 & Net Earnings of $0.30 million
www.wgiheavyminerals.com COEUR D'ALENE, ID, March 23, 2012 /CNW/ - WGI Heavy Minerals...
About this update from Nickel Creek Platinum Corp.
[{"type":"text","content":"\n\n\n\n\n\nwww.wgiheavyminerals.com\n\n\nCOEUR D'ALENE, ID, March 23, 2012 /CNW/ - WGI Heavy Minerals,\n Incorporated (\"WGI\") (TSX: WG) today reported net earnings for the year\n ending December 31, 2011 of $0.013 per share ($0.30 million) compared\n to earnings of $0.042 per share ($0.99 million) for 2010.\n\n\nThe Company continued to experience year-over-year revenue growth\n achieving $37.82 million in revenues for the year; an increase of 11.2%\n over 2010. Revenues for the Abrasives segment improved 11.6%\n year-over-year closing the year out at $32.77 million for 2011. The\n Waterjet Parts segment revenues increased 8.8% over 2010 to $5.05\n million reflecting increased sales in Eastern Europe and the Middle\n East.\n\n\nDownward pressure on sales prices due to increased competition and\n garnet supply resulted in the Company experiencing a 3% decline in its\n overall gross margin, as anticipated at the beginning of the year. \n Consequently, earnings from operations declined to $0.83 million\n compared to $1.36 million in 2010. In addition to the price erosion of\n garnet, higher Sales, General and Administrative (\"SG&A\") expenses\n contributed to the decline.\n\n\nDuring the year the Company incurred $0.57 million in non-recurring\n charges related to the restructuring of its European subsidiary,\n Kominex.  In order to functionally align and streamline the Company's\n efforts in Europe the resident Managing Director for Kominex was\n removed. The Company incurred professional fees, severance costs, and\n costs related to staff turnover during this restructuring. The Company\n has hired an experienced General Manager and new sales and\n administrative personnel. This restructuring has improved worker safety\n and environmental stewardship. The European operations have also been\n strengthened by installing and commencing the implementation of a fully\n integrated Electronic Data Processing (\"EDP\") system, and the\n acquisition of a new warehouse.\n\n\nRevenues for the fourth quarter were $8.05 million, down 6.5%\n year-over-year compared to the fourth quarter of 2010.  The main\n contributing factor for the decrease was a decision by one of our\n Kominex customers of our other abrasive products line to launch its own\n recycling business and facilities. As a consequence this customer\n stopped ...