Eco-Bat Technologies Ltd., a lead producer, reported an 83% decline in third-quarter profit as costs increased.
Net income was 1 million pounds ($1.6 million), compared with 6 million pounds in the same period a year earlier, Matlock, England-based Eco-Bat said in an e-mailed report today. Revenue climbed 11 percent to 429.2 million pounds from 387.3 million pounds as sales of lead rose 15 percent to 213,000 metric tons. The total cost of sales jumped 15 percent to 391.6 million pounds from 341.6 million pounds.
Cost increases included higher feedstock expenses and energy prices, Eco-Bat said in its report. Operating expenses gained 1.4 percent, partially as a result of increased legal costs associated with a European Commission investigation after regulators made unannounced visits in September 2012 at companies that buy old batteries and other lead scrap for the production of recycled lead. The loss of a contract with Johnson Controls Battery Group Inc. in January also hurt profitability, Eco-Bat said.
Still, “the market demand for lead has remained good,” the company said in its report, adding that it remains in “a robust position to cope with the prevailing difficult industry conditions.”
((Eco-Bat will hold a conference call at 3 p.m. U.K. time. The dial-in number is +44-0-20-8515-2313 or U.K. toll-free 0800-358-5256. A replay will be available for two weeks on +44-0-20-7959 6720 or U.K. toll-free 0800-358-9369, pin code 4652056#.))