7 November 2014

5N Plus reports Q3 revenue up 5% year-on-year

For third-quarter 2014, specialty metal and chemical products firm 5N Plus Inc of Montreal, Québec, Canada has reported revenue of $114.4m, down 16% on $136.6m last quarter but up 5% on $108.6m a year ago.

“We reported another solid quarter despite the usual summer slowdown and some margin erosion in our solar business,” says president & CEO Jacques L’Ecuyer.

5N Plus provides specialty purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications. The firm also has fully integrated closed-loop recycling facilities.

Adjusted EBITDA was $8.1m, down from $10.8m last quarter but up from $5.8m a year ago. “Combined with the results of the first two quarters of the year we are heading towards a record adjusted EBITDA level for 2014,” says L’Ecuyer.

“Demand remains strong in most market segments, as reflected in our backlog and bookings levels,” L’Ecuyer. “This is especially true for our bismuth products which are on track to reach a record level for a second consecutive year,” he adds. Order bookings were $101.3m, up on $99.6m last quarter and up 14% on $88.6m a year ago. Bookings for the nine-month period to end-September were $360.5m, up by 17% year-on-year from $307.2m.

“We continue to focus on improving operational efficiency and expect to see gains in terms of costs, throughput and inventory levels in the coming quarters as we leverage several initiatives for which we have yet to reap the full benefits,” says L’Ecuyer. “These include ramping up of our bismuth refining activities in Laos as well as optimization of our footprint,” he adds.

“We are excited by progress made in several new areas including our semiconductor substrate business, where we continue to make both technical and commercial progress in material systems which now extend beyond germanium,” says L’Ecuyer. “This progress is a key component of our growth strategy as we aim to expand our range of value-added products and develop a stronger foothold in recycling and primary sourcing,” he adds. “We expect to report further progress in these areas in the coming quarters as they gradually positively impact our bottom line.”

See related items:

5N Plus' Q2 revenue up 21% year-on-year

5N Plus announces new US$125m credit facility

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Visit: www.5nplus.com