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[October 2002]
Zemex Corp Announces 3rd Quarter Earnings
Zemex Corporation (Toronto, Ontario, Canada) reported on 23 October 2002 a
third quarter loss of $0.04 per share as compared to income of $0.01 per
share for the third quarter of 2001. The loss was the result of a one time
charge of $1.3 million which reduced the quarterly earnings by $0.10 per
share to a loss of $0.04 per share. The charge resulted from employment
contracts entered into with two executives and the President and CEO in
connection with his previously announced retirement.Revenue actually increased 38.7% from $14.1 million for Q3 2001 to $19.6
million for Q3 2002. The increase was primarily due to the acquisitions of
the attapulgite clay and West Virginia aluminium dross plants - both in the
first quarter of 2002.As in the previous three quarters, operating earnings were adversely
impacted by lower than anticipated sales of low-iron sand. This material is
sold pursuant to a take-or-pay contract where the customer is obliged to
take the committed tonnage by year end. The sales of this material will
increase significantly in the fourth quarter as the customer takes the
required volume.Richard Lister, President and CEO, said he expected the fourth quarter to be
a significant improvement over the first three, based on the improved
operating results in the minerals group and the very significant improvement
in the aluminium recycling group.
ENDS