Neo Performance rises on higher profit in Q2

Neo Performance Materials

09/08/2024 15:20

** Shares of industrial materials maker Neo Performance
Materials  NEO.TO  up 9.3% at C$7.78
    ** Company reports Q2 income attributable to shareholders of
$859 mln, or 2 cents per share, vs income of $310 mln, or 1 cent
per share, a year earlier
    ** Reports Q4 2023 revenue of $107.5 mln vs $170.4 mln a
year ago
    ** NEO sees "rare earth prices remain under pressure driven
by continued sluggish demand coupled with rising supply, as
China continues to increase production quotas and existing
operating mines in the rest of the world continue to increase
capacity and output"
    ** "Although prices remain subdued, rates of rare earth
pricing declines are slowing, which is expected to translate to
reduced earnings volatility in Chemicals & Oxides' (segment)" -
NEO
    ** The Magnequench segment, which produces
neodymium-iron-boron magnets, saw volume increase of ~14.8% YoY
    ** NEO sees FY2024 outlook for adj. core profit at $45-$50
mln, increase of 20%-35% from year ago
    ** Co doesn't see China's restrictions on rare earths
impacting its current operations
    ** Including session's gains, shares up ~2% YTD

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))