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[December 2003]
Performance Minerals' Improvement Helps Oglebay Norton's Results
Revenues for Oglebay Norton Company (Cleveland, OH, USA) for the third quarter 2003 were US$121.5 million compared to US$123.7 million in the third quarter of 2002. Revenues for the first nine months of the year were US$300.9 million, marginally up from the US$298.6 million for the first nine months of last year.
Operating income for Q3 2003 was US$6 million compared to US$14.5 million in Q3 2002. For the first nine months, the company reported an operating loss of US$2.4 million against an operating income of US$31.5 million last time (results this time include a US$13.1 million asset impairment charge taken in the second quarter).
Net income for Q3 2003, including an income tax benefit of US$5.2 million (primarily from a reversal of 1999 tax-year reserves), was US$325,000 compared to US$2 million last year.
Commenting on the third quarter results, CEO Michael Lundin said: "Revenues for the quarter were down slightly, primarily reflecting continued weak demand for limestone and shipping services from our Great Lakes Minerals segment. This decrease was partially offset by increases in sales from our Performance Minerals and Global Stone segments. The decrease in the company's operating income for the quarter reflects lower income from the Great Lakes Minerals segment, as well as increased general, administrative and selling expenses".
Performance Minerals improved revenues from US$23.2 million to US$25.4 million for the third quarter and Global Stone improved from US$43.1 million to US$45.8 million.
Continuing on the company as a whole, Michael Lundin added: "We continue to identify and implement measures to contain costs, increase productivity and improve working capital efficiency, especially inventory management. Some of the measures we have taken have improved our cash position but have had a negative effect on operating income".
ENDS