Zemex Reports Improved Results for Second Quarter 2001
August 7, 2001
Zemex Corp. recently reported net income of $0.07 per share for the second quarter ended June 30, 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 the company's 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 company's feldspar operations continued to perform well, and its phlogopite mica operations saw reduced tonnage and pricing, largely due to the slowness in the auto industry, the major market it serves. Although volumes to this industry have been slightly firmer since the end of the first quarter, pricing and mix remain negative.