Industry suppliers feel downturn pain
May 30, 2009 By Andy Bateman
May 30 2009 – A Canadian Press report on
Nordex Explosives Ltd illustrates an unfortunately common situation for industry
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.
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