Magnetics Business & Technology - July/August 2021 - 27

INDUSTRY NEWS
Neo Performance Materials Reports Strong First Quarter
growth came across almost all key applications but particularly in
the automotive segment, the company reported. A portion of the
volume growth can be attributed to customers rebuilding inventory
levels and a portion is attributed to new growth in new platforms.
For example, the compression magnet production volumes
doubled compared to historical levels as Magnequench continues
to make progress in this strategic initiative. Volumes for key
electrified-automotive applications, such as traction motors and
pumps, also saw very strong growth.
Neo Performance Materials, considered a bellwether for the
health of the magnetics industry and market, rebounded strongly
from the Covid-19 slump in the most recent quarter with a gain of
44% in revenue over the same period a year ago.
Revenues and tonnage were both up significantly
leading to big gains in operating income and profitability.
The
strong results were driven largely by the
economic recovery from the impact of COVID-19
and supply chains being refilled. Selling prices also
strengthened as rare earth prices continued to rise
through most of the first quarter of 2021. Compression
magnets and electric-vehicle applications were
particularly strong sectors for its magnetics business.
Revenues
of $130.9 million for the period ended
March 31 brought the second consecutive quarter
of resurgence company-wide, following an 18.4%
gain in revenue in the previous quarter. Volume
improved 27% to 4,206 tons while operating income
jumped 227% to $16.4 million compared to the
same period a year ago. Compared to the previous
quarter, operating income shot up 414% while earnings
climbed significantly also.
" I am pleased to see demand,
volumes, and margins return
to robust, pre-COVID levels
across most of our businesses,
resulting in strong operating results
in the first quarter, " said
Constantine Karayannopoulos,
CEO. " The positive trend
and momentum driven by
strong demand for our current
product portfolio, particularly
For more info, see www.neomaterials.com.
MAGNETIC CHARGING SYSTEMS & QUALITY CONTROL
FOR ELECTRIC MOTORS IN AUTOMOTIVE
AND POWERTRAIN APPLICATIONS
MAGNETIZING SYSTEMS
FOR INDUSTRY
MEASURING SYSTEMS
FOR RESEARCH & DESIGN
CUSTOM
MAGNETIZING
FIXTURES
Constantine
Karayannopoulos,
CEO of Neo
those in the automotive electrification applications
supply chain, continue to show promise in the second
quarter. I am also increasingly optimistic that
several new product development efforts are likely
to achieve commercial viability over the next several
quarters, " he added.
Business in Its Magnequench segment for rare
earth magnetic materials was particularly robust.
Revenues increased 68.5% to $64.9 million compared
to $38.5 million in the same period for 2020.
Volume increase from 1,271 tons to 1,725 tons.
For the three months, volumes in the Magnequench
segment saw a continued rebound and strong
growth compared to prior periods. The volume
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HIGH EFFICIENCY
MAGNETIZERS
MAGNETIZING
STATIONS
Laboratorio Elettrofisico is a global company specializing in the engineering,
design, and manufacturing of the world's most precise magnetizing and
magnetic measuring equipment.
Our capabilities allow us to follow the development of the industrial project
from the early stage (R&D) to the production phases, including technical
service. This maximizes the benefit in terms of time and cost saving.
Laboratorio Elettrofisico USA
40 Engelwood Dr., Lake Orion
(248)340 7040
ITALY (HQ) - USA - CHINA
www.laboratorio.elettrofisico.com
July/August 2021 * Magnetics Business & Technology 27
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Magnetics Business & Technology - July/August 2021

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