Irish firm that helped free Chilean miners sees profits slide
Published 26/05/2015 | 08:19
Irish mining equipment firm Mincon, whose products were used to reach the trapped Chilean miners in 2010, has seen its profit before tax fall by 10pc in the year to date despite a 40pc increase in revenue.
In a trading update covering the period from the start of January to date, including the quarter to the end of March, the Shannon-based firm said that the increase in revenue was largely driven by additional revenue from acquisitions.
Excluding acquisitions, revenue was flat on a like-for-like basis compared to the same period last year.
The gross margin for the quarter was 38pc, compared to 50pc the year before and profit before tax of 12pc compared to 22pc in the corresponding period in 2014.
The firm said that the reduction in the its profit before tax is primarily attributable to "the reduction in gross margin".
"This is partly due to the mix of products as a result of the acquisitions completed in the second half of 2014, but also due to market conditions," a statement from the company said. "The significant drop in commodity prices in the past 18 months has resulted in pricing pressure in all markets."
Mincon said that it is now taking measures to adjust its cost base.