June 9, 2011 / 11:54 AM / 7 years ago

UPDATE 1-Migao profit declines; outlines share buyback plan

TORONTO, June 9 (Reuters) - Chinese specialty fertilizer maker Migao Corp MGO.TO said on Thursday its fourth-quarter profit fell 14 percent, as gas supply issues in the Sichuan province had an impact on potassium nitrate output.

Net income in the quarter to March 31 fell to C$8.9 million, or 17 cents a share, from a year-ago profit of C$10.4 million, or 20 cents a share.

The company also outlined plans to buy back up to 2.64 million shares, or 5 percent of issued and outstanding shares, in an effort to restore investor confidence.

Shares of Migao have come under significant pressure over the last week as investors rattled by the fraud allegations against Chinese forestry company Sino-Forest TRE.TO, dump investments in other North American-listed Chinese companies. [ID:nN03131872] [ID:nN08210464]

Migao shares have fallen 22 percent in the week to C$5 on the Toronto Stock Exchange. Its shares are down more than 35 percent year-to-date. (Reporting by Euan Rocha; editing by Janet Guttsman)

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