August 12, 2010 / 12:37 PM / in 7 years

UPDATE 1-Neo Material Q2 beats Street as demand rebounds in Asia

* Q2 EPS $0.13 vs est $0.09

* Revenue $79.2 mln vs est $65.8 mln

* Says not hurt by new rare earth export quotas in China

Aug 12 (Reuters) - Canada’s Neo Material Technologies Inc NEM.TO reported quarterly results that trumped estimates and posted its highest revenue in eight sequential quarters, boosted by a recovery in electronics markets in Asia.

For the second quarter, the maker of magnetic powders and rare earth products earned $16.0 million, or 13 cents a share, compared with $4.8 million, or 4 cents a share, a year ago.

Revenue nearly doubled to $79.2 million, as the company’s Magnequench division shipped 75 percent higher quantities of its neodymium-iron-boron magnetic powders, used in high technology products.

Analysts on average expected the company to earn 9 cents a share, on a revenue of $65.8 million, according to Thomson Reuters I/B/E/S.

Neo Material, which is emerging as leading processor of minor metals through its recent acquisitions, has signed a key agreement with U.S.-based Molycorp Inc MCP.N to manufacture, supply and distribute rare earth products. [ID:nSGE6570FH]

The company, which operates rare earth processing plants in China, said despite recent tightening of rare earth export quotas in that country, its businesses continues to demonstrate strength.

Shares of the company, which have gained 9 percent over last three months, closed at C$3.96 Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Prem Udayabhanu)

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