Decline in revenue, increased operating profit. Rare metals division performed stronger than last year.
Toronto-based Neo Performance Materials reported figures for the third quarter on Thursday, revealing a mixed bag: While overall revenue declined compared to the same period last year, the company specializing in advanced industrial materials managed to increase its operating income as well as the adjusted EBITDA. The figures show that the rare metals division performed significantly stronger than in 2023 despite a challenging market environment for rare earths. Additionally, Magnequench, the company’s magnetic products division, achieved its highest quarterly volume of the year, driven by traction motor sales and spot demand in bonded powder, the company said.
Neo’s President and Chief Executive Officer Rahim Suleman emphasized that the “performance, driven by growth in our Magnequench and Rare Metals business units, reaffirms our business strategy and approach.” Earlier this year, Neo began divesting unprofitable business units, including two in China (we reported).
In the statement, Neo also reported on recent developments: The construction of its sintered rare earth magnet plant in Estonia is nearing completion and the company secured a $50 million credit facility from Export Development Canada, with a five-year term to support final construction, equipment purchases and commissioning of the facility.
Photo: iStock/Elena Bionysheva-Abramova
