Metal-Tech sees more market weakness
Shares in speciality metal producer and recycler Metal-Tech were down after it said profits fell in 2007 and that markets had continued weakening into 2008.
Pre-tax profits in the year to December 31 fell to $3.3m from $14.4m the previous year, even as revenues climbed to $136.7m from $119.1m.
Revenues were lifted by the company's Mongolian plant, which makes molybdenum chemical products, reaching full capacity. However, start-up costs at the plant weighed on profits, as did the weaker dollar and a $7.6m write-off in Uzbekistan, where Metal-Tech is battling an attempt to take over its operations.
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"2007 was a challenging year for the company as we tackled several operational issues that had an overall impact on the company's results," executive chairman Aik Rosenberg said.
"Having resolved most of these issues, and on the basis of effective R&D, the company has set itself on a path to return to growth."
Jonathan Ben-Cnaan, who became the company's chief executive earlier this year, said: "'Looking ahead, the weakening of markets seen towards the end of last year has continued into 2008. However, as no further softening has been experienced and the market remains stable, the Company remains positive about the coming year."
