Fertilizer maker Migao posts loss on weak demand in China
(Reuters) - Chinese fertilizer maker Migao Corp (MGO.TO: Quote) reported a second-quarter loss due to weaker demand for its products and lower selling prices, but expects margins to improve in the current quarter.
The company warned last month that weaker demand for fertilizer in China during the summer would weigh on its results.
Toronto-listed Migao posted second-quarter net loss of C$8.1 million, or 15 Canadian cents per share, compared with a profit of C$6 million, or 11 Canadian cents per share, a year earlier.
Sales plunged 82 percent to C$11.7 million.
Migao uses potassium chloride to produce higher-margin crop nutrients such as potassium nitrate and potassium sulfate.
Gross margins fell to 1.8 percent from 21.4 percent a year earlier.
Migao's shares, which have fallen 44 percent this year, closed at C$2.25 on the Toronto Stock Exchange on Wednesday.
(Reporting by Ankur Banerjee in Bangalore; Editing by Don Sebastian)
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