Business
WGI Heavy Minerals Announces Q3 Net Earnings of $0.30 million and YTD Net Earnings of $0.55 million
www.wgiheavyminerals.com COEUR D'ALENE, ID, Nov. 9, 2011 /CNW/ - WGI Heavy Minerals, In...
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, Nov. 9, 2011 /CNW/ - WGI Heavy Minerals, Incorporated\n (\"WGI\") (TSX: WG) today reported net earnings for the quarter ending\n September 30, 2011 of $0.013 per share ($0.30 million) compared to\n earnings of $0.015 per share ($0.34 million) for the same quarter in\n 2010.\n\n\nIn the third quarter of 2011, earnings from operations increased 23.6%\n to $0.53 million compared to $0.43 million in Q3 2010.   The\n improvement was primarily driven by an increase in sales volume and\n margin preservation aided by a 3.7% reduction in sales and general and\n administrative (\"SG&A\") expenses.  In turn these savings were somewhat\n offset by higher exploration costs and foreign exchange losses.\n Consolidated net income for the quarter was $0.30 million ($0.013\n earnings per share) compared to income of $0.34 million in the third\n quarter of 2010 (earnings per share of $0.015).\n\n\nFor the first nine months of 2011, earnings from operations increased\n 26.2% to $1.21 million from $0.96 million in the same nine-month period\n in 2010.  This improvement was primarily due to an increase in sales\n volume across all product lines offset partially by a modest increase\n in SG&A expenses of 0.8% and slightly higher exploration costs.  In an\n effort to functionally align and streamline the Company's efforts in\n Europe, the Company restructured the management of its German\n subsidiary, Kominex in the first quarter of this year.  The\n restructuring resulted in the removal of the resident Managing Director\n for Kominex and a non-recurring cost of $0.32 million.  Consolidated\n net income for the period was $0.55 million ($0.023 earnings per share)\n compared to income of $0.68 million in the first nine months of 2010\n (earnings per share of $0.029).\n\n\n\"Globally, improved demand has stimulated revenue growth across all\n segments\" said Greg Emerson, President and CEO.  \"However, competitive\n pressure from ongoing product oversupply and the pursuit of market\n share among competitors has created a drag on pricing.\"\n\n\nOutlook\nWGI continues to execute its strategy to increase market share in 2011\n and 2012. Garnet and waterjet business in 2011 is expected to grow\n through new customer additions and increased volumes of...