COEUR D'ALENE, ID, April 26 /CNW/ - WGI Heavy Minerals, Incorporated ("WGI") (TSX: WG) today reported preliminary results for its first quarter of 2010 which ended March 31, 2010.
The Company announced that it expects to report revenues for the first quarter of 2010 of approximately $8.3 million compared to 2009 first quarter revenues of $6.1 million. The Company's revenues in the first quarter of the year are expected to climb 37% above revenues in the first quarter of 2009 and increase 9% from the fourth quarter of 2009. Improvements are expected across all business segments.
Gross profit margins will remain flat at 23.5% with favourable product mix staving off the effects of pricing pressures of the over supplied garnet market. The Company expects earnings for the quarter to be approximately $0.14 million resulting in $0.006 earnings per share compared to a loss of ($0.142) million and a loss per share of ($0.006) for the first quarter of 2009. Cash and securities held by the Company are anticipated to be at approximately $6.7 million.
"We're looking forward to posting positive per share earnings for the first quarter in 2010 in a difficult economy. The Company has succeeded in identifying new customers and sales channels. As a result, we have started to gain market share in 2010 and plan to continue down that path as the economy begins to strengthen," stated Greg Emerson, President and CEO. "Due to favourable weather conditions, we were able to operate the Emerald Creek Garnet mine in all three months of the first quarter of 2010, contributing to our positive results. In addition, volumes of our Bengal Bay Garnet distributed from India rose 66% compared to the same quarter in 2009 and increased 40% from the last quarter of 2009."
The Company anticipates making a full earnings release in approximately two weeks.
The principal business of WGI Heavy Minerals, Incorporated is the processing and sale of industrial abrasive minerals and the manufacturing and sale of ultra high pressure waterjet cutting machine replacement parts. The Company, through its subsidiaries, markets and sells abrasive products and services and waterjet replacement parts globally. This press release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives. Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.
Expressed in U.S. dollars unless otherwise stated.
SOURCE WGI Heavy Minerals, Incorporated
For further information: For further information: Greg Emerson, Ed Kok, 810 Sherman Ave., Coeur d'Alene, ID, 83814, U.S.A., (208) 666-6000, Fax (208) 666-4000, www.wgiheavyminerals.com; Greg Emerson, President & CEO, (208) 770-2202, E-mail firstname.lastname@example.org; Ed Kok, General Counsel, Investor Relations, (208) 770-2208, E-Mail email@example.com