Profits down 3% at New World Resources

New World Resources, a FTSE 250 producer of coal for the steel and energy sectors, has seen profits before tax fall 3% in the nine months to the end of September, compared to the equivalent period of 2010.

Revenues over the nine months were up 10% compared to 2010 and earnings before interest, taxes, depreciation and amortisations (EBITDA) were 22% higher. However, it is clear the third quarter has been difficult with revenues down 12% on the preceding quarter with profit before tax down 59%.

New World Resources is focused on Central Europe through its subsidiary OKD, the largest hard coal mining company in the Czech Republic. It also has two development projects in Poland.

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In his statement commenting on today's update NWR's chief executive, Mike Salamon says he is seeing "increased levels of prudence" from customers as the Eurozone fails to resolve its debt crisis."

He adds however that: "This year is shaping up to be the second best year in NWR's history. We continue to deliver strong operating and financial results whilst pursuing our growth plans."

Shares in NWR were down 0.66% in early trading. In the year to date New World's share price has dropped 53%.

BS