Neo Material profit falls on higher costs

May 8, 2012 (Source: Reuters) — Neo Material Technologies (NEM.TO) said on Tuesday its first-quarter profit fell 66 percent on higher operating costs and one-time charges related to a takeover by Molycorp Inc (MCP.N).

The Toronto-based rare earth processor and producer said its profit in the quarter ended March 31, 2012 was $12 million, or 10 cents a share. That compared with a year-earlier profit of $32 million, or 26 cents a share, in the year-earlier period.

Excluding one-time items, quarterly earnings were $21 million, or 18 cents a share.

Revenue rose to $179 million compared with $133 million in the first quarter of 2011.

Neo agreed in March to a $1.3 billion takeover by rare earth miner Molycorp. The deal is expected to close in the second or third quarter of 2012.