WGI Heavy Minerals announces second quarter 2008 results

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[{"type":"text","content":"\n\n\n\nwww.wgiheavyminerals.com\n\n\nCOEUR D'ALENE, ID, July 29 /CNW/ - WGI Heavy Minerals, Incorporated\n(TSX: WG) today announced results for the second quarter and first half ended\nJune 30, 2008. All dollar amounts are in United States dollars unless\notherwise indicated. Results have been filed and may be viewed at\nwww.sedar.com.\n\n\nResults of Operations\n\n\nRevenues for the six-month period ended June 30, 2008 increased 1% to\n$13.6 million, compared with $13.5 million for the same period in 2007 due to\nhigher prices and growth across most product lines, led by 57% revenue growth\nin other abrasives and 14% revenue growth in waterjet parts. Garnet revenues\ndeclined 12%, but still make up the majority of sales at 61% of total sales.\nGarnet sales volumes declined 28% due to lack of supply due to inclement\nweather in India and Idaho. Waterjet replacement parts and other abrasives\neach represent 19% of total sales.\n\n\nGross profit margins decreased to 20% in the first six months of 2008\ncompared with 21% for the same period in 2007 despite the increases in sales\nprices in garnet and other abrasives. While the gross profit margin increased\nfor most product lines during the second quarter of 2008, they were not enough\nto offset the problems of the first quarter regarding the extreme cold\ntemperatures and snow in Idaho and at the same time, unseasonable rainfall and\nflooding in India.\n\n\nOperating general and administrative expenses increased 15%\nyear-over-year due to increased foreign travel, professional fees, and\nsalaries. WGI incurred non-operating general and administrative expenses in\n2008 related to the sale of our Indian operations, specifically legal fees of\n$0.52 million and special committee fees of $0.16 million. In addition, the\nCompany incurred $0.34 million related directly to the Company's contested\nannual general meeting of shareholders held in June. These one time costs\ntotal $1.02 million. The remaining non-operating general and administrative\nexpenses increased 4% year over year.\n\n\nThe Company posted a net loss of $1.40 million, or $0.06 per share, for\nthe first half of 2008, compared with a net loss of $0.33 million, or $0.01\nper share, for the first half of 2007.\n\n\n"With the exception of our operations related to India and the costs\nassociated with the sale of Transw...

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