May 30 2009 – A Canadian Press report on Nordex Explosives Ltd illustrates an unfortunately common situation for industry suppliers.

Nordex Explosives Ltd. (TSXV:NXX) said Thursday lower sales to clients affected by the downturn in the mining industry pushed the company into the red in the first quarter.

Nordex reported a January-March period loss after taxes of $180,271 or 2.57 cents a share. That reversed year-earlier net income of $83,565 or 1.2 cents.

"Several of the company's mining clients had mines that were under care and maintenance and as a result decreased their purchases of explosives during the first quarter of 2009 compared to the comparative period in 2008," the company stated.

The explosives provider reported revenues of $1.3 million, a 19 per cent reduction from $1.6 million.

The Toronto-area company may have swung to a loss for the quarter but it had a more optimistic outlook ahead. Nordex said it's expecting to generate $2 million in revenue, buoyed by increased orders from a new mining and several new drill and blast clients.

Nordex has a manufacturing operations and distribution centre near Kirkland Lake, Ont. It has been supplying explosives for the mining, quarry and road construction industries since 1970.