MFC Industrial 1Q net income tumbles as costs rise
MFC Industrial posts steep drop in 1st-qtr net income, as higher costs outpace sales growth
NEW YORK (AP) -- MFC Industrial Ltd., which finds and delivers raw materials to clients around the world, said Wednesday its first-quarter net income tumbled 70 percent, as a steep jump in costs offset sales growth.
The Vancouver, British Columbia-based company earned $5 million, or 8 cents per share, down from $16.9 million, or 27 cents per share, in the same quarter of 2012.
MFC called the recent quarter's profit "disappointing" and attributed the drop to various factors including timing issues on commodities shipments and higher expenses related to the integration of recent acquisitions. Total costs rose 51 percent to $200.6 million, from $132.9 million a year ago.
Gross revenue, which includes equity income, jumped 40 percent to $207.3 million from $147.6 million, boosted by contributions from acquisitions and higher volumes and prices for some commodities.
MFC's U.S. shares rose 29 cents, or 3.4 percent, to $8.79 in midday trading. The stock has changed hands between $6.65 and $10.39 in the past 52 weeks.
