May 13, 2010 / 11:47 AM / 8 years ago

UPDATE 1-Neo Material posts Q1 profit on strong demand

* Q1 EPS $0.11 vs est $0.07

* Revenue up 127 pct to $65.1 mln

* Sees demand continuing for foreseeable future

May 13 (Reuters) - Neo Material Technologies Inc NEM.TO, a maker of magnetic material and magnets, posted higher-than-expected quarterly profit, driven mainly by robust demand for its specialty materials.

For the first quarter, net income was $12.8 million, or 11 cents per share, compared with a net loss of $3.1 million, or 3 cents per share, a year ago.

Revenue rose 127 percent to $65.1 million. Revenue at its Magnequench division, which makes the magnetic powders used in the production of precision motors and sensors, nearly tripled to $38.1 million.

“We expect this healthy demand for our products to continue in the foreseeable future,” Chief Executive Constantine Karayannopoulos said in a statement.

Analysts on average were expecting the company to earn 7 cents per share on revenue of $28.8 million, according to Thomson Reuters I/B/E/S.

Shares of the Toronto-based company closed at C$4.25 Wednesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Ratul Ray Chaudhuri)

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