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[September 2001]
Zemex Q2 Results
Zemex Corporation announced net income of $0.07 per share for the second quarter ended 30 June 2001, compared to $1.16 per share in the second quarter of 2000; however, the second quarter of 2000 included $1.11 per share from discontinued operations, primarily due to the profit on the sale of its Pyron division.
On a comparable basis, Zemex reported $0.07 versus $0.05 per share from continuing operations. Revenue decreased to $14.5 million from $21.1 million in the comparable period of 2000, largely due to the sale of assets and the shedding of non-core businesses, as well as the suspension of operations at its North Carolina muscovite mica facility in the ensuing interval. Reflecting these changes, gross margins improved from 26.4% to 36.6%, quarter over quarter.
During the second quarter the feldspar operations - serving the ceramic sanitaryware and tile sectors - continued to perform well. The phlogopite mica operations saw reduced tonnage and pricing largely due to the slowness in the auto industry. Low-iron sand sales decreased in the quarter; however, as much of the increase was deferrals, Zemex anticipate substantial increases in volumes of this product towards the year-end.
ENDS