Business
WGI Heavy Minerals Announces Second Quarter and Half Year Earnings
WGI Heavy Minerals Announces Second Quarter and Half Year Earnings
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[{"type":"text","content":"\n\n\n\n Aug. 12, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nCOEUR D'ALENE, ID, Aug. 11 /CNW/ - WGI Heavy Minerals, Incorporated ("WGI") (TSX: WG) today reported second-quarter earnings of $0.010 per share ($0.24 million), compared to earnings of $0.012 per share ($0.28 million) in the same period last year. In addition, the earnings for the six-month period ending June 30, 2010 were $0.016 per share ($0.38 million) compared to earnings of $0.006 per share ($0.14 million) in the same period in 2009.\n\nOverview\n\nWGI's markets continue to be influenced by turbulence and ambiguity in the global markets. Customers are operating under tight cash restrictions and with some uncertainty as to future business, especially in the U.S. market. Demand for abrasives in Europe, the Middle East and Asia has started to improve, especially in the coarse grade markets. WGI's Abrasive segment is growing as planned, although slower than budgeted, due to sharp competition and slower market growth. WGI's Waterjet Parts segment is showing improvement across most markets, especially outside North America. The auto and job shop markets in the U.S. continue to improve slowly, but steadily.\nFinancially, the improvement WGI realized in the first quarter of 2010 continued into the second quarter. Revenues of $8.46 million were up 20.5% for the three-month period ended June 30, 2010, compared to the same period in 2009. For the first half of 2010 revenues were $16.8 million, increasing 28.3% from the six-month period a year ago. In 2010, WGI identified new business to increase sales volumes by 35% and to June 30, 2010 the Company has successfully added nearly half of this new business. WGI's gross margins have improved from 23.5% in the first quarter of 2010 to 26.0% in the second quarter of 2010, averaging 24.8% for the six-month period.\nPricing pressure remains strong as customers look for low prices in an oversupplied waterjet garnet market, ...