July 5, 2012

China's Migao reports quarterly loss

Migao Corp., a Chinese specialty fertiliser maker, reported a quarterly loss, brought about by an impairment cost.

The company said it will starting paying a dividend.

Migao, which uses potassium chloride, or potash, to produce higher-margin crop nutrients such as potassium nitrate and potassium sulfate, said it expects to pay an annual cash dividend of about CAD6 (US$5.93) per share.

An initial dividend is expected to be declared in August, the company said in a statement.

The company reported a fourth-quarter net loss of CAD1 million (US$981,300), or CAD0.02 (US$0.02) per basic share, compared with a profit of CAD8.8 million (US$0.02), or CAD17 (US$16.79) per basic share, a year earlier.

The company, which has a market value of about CAD124 million (US$122.48), said it would have earned CAD5 (US$4.94) per basic share, excluding an impairment charge for assets used in producing sulphuric acid.

Sales rose 18% to CAD138.8 million (US$137.09) on strong demand for its new specialty compound fertilisers and higher sales of potash.

Migao's shares closed at CAD2.36 (US$2.33) on Friday on the Toronto Stock Exchange.