Timminco attributes loss to weak demand for magnesium

Timminco’s (TSE) 50th anniversary celebrations have been marred by the release of financial results for the first half of the year.

In the first six months, the magnesium producer lost $5.6 million (56 cents per share) compared with a loss of $284,000 during the same period last year. Second-quarter losses were $2.3 million (23 cents per share) compared with a net income of $41,000 (23 cents) in 1990.

Timminco says the poor results reflect weak demand for non-ferrous metals during the recession and lower prices caused by increased capacity within the magnesium industry.

Since April, the company has closed its Beauharnois, Que., smelter indefinitely, rationalized its Haley, Ont., facilities, and implemented a company-wide cost reduction program.

On the positive side, Timminco has opened a new anode finishing facility in Sydney, Australia, which will provide a platform for further expansion into the Pacific Rim.

As company associates gather to celebrate 50 years of magnesium production at the Haley plant 100 km west of Ottawa, Timminco announced that it expects further losses for the balance of the year.