GREENWOOD VILLAGE, Colo. (AP) -- Molycorp Inc. said Thursday that it slid to a loss in the second quarter, as higher costs and lower product volumes and prices offset improved revenue for the rare-earth mineral producer.
Management also warned it will need to seek financing to cover a substantial portion of the company's capital expenditures this year because it anticipates that cash from operations will be less than previously expected.
The news sent the company's shares tumbling more than 10 percent in extended trading.
Molycorp processes and sells rare earth oxides that are key ingredients for electronics products and batteries for automobiles.
The company's loss attributable to common shareholders totaled $67.6 million, or 71 cents per share, for the three months ended June 30. That compares with net income of $47.8 million, or 53 cents per share, in the same period last year.
Revenue rose 5 percent to $104.6 million from $99.6 million a year earlier.
The latest results missed analysts' consensus forecast, which called for earnings of 3 cents per share on $105.9 million in revenue, according to FactSet.
Management said it believes the company remains well positioned to eclipse last year's sales total, citing existing customer orders and acquisitions, among other factors.
It also noted that prices for most of the company's products stabilized or declined at a much slower pace in the second quarter than earlier in the year. That's a trend Molycorp management believes may continue over the next two quarters.
The company's shares fell 55 cents, or 3.3 percent, to $16.07 in regular trading. The stock tumbled $1.67, or 10.4 percent, to $14.40 in aftermarket trading.
