The Canadian company builds a magnet factory in Estonia, among other things.
Neo Performance Materials reports a 37% drop in sales to $107 million for the second quarter compared to last year. However, the manufacturer of rare earth magnets and industrial materials says that the balance sheet for the first half of 2024 looks better than in the same period of the previous year. Adjusted EBITDA increased slightly to $24.2 million, and the company is forecasting 45 to 50 million for the year as a whole. According to CEO Rahim Suleman, Neo is currently undergoing a transformation process, which is showing initial results. In August, a stake in a plant for the production of gallium trichloride was sold to concentrate on the most important markets and products in the future. A separation plant for light rare earths in Zibo, China, was also decommissioned in April. In Europe, on the other hand, Neo is expanding its presence with a factory for sintered magnets, which are used in the electric car drive motors, built in Estonia. Also in August, a major European car manufacturer placed a large order with Neo for this factory, which accounts for around 35% of the production volume.
In the area of technology metals, demand for hafnium contributed positively to the Group’s performance. The metal is required for the construction of aircraft engines, among other things. Aviation is currently recovering from the coronavirus pandemic, and many airlines are taking advantage of this to modernize their fleets.
Photo: iStock/loraks
