OMG sells nickel business to Norilsk
October 29, 2007
OM Group, the Cleveland, Ohio, based producer of cobalt powder and specialist nickel powders, has completed the previously announced sale of its nickel business to Norilsk Nickel for $408 million in cash.
Norilsk is Russia’s largest mining and metallurgical company and the world’s largest producer of Ni, Pd, as well as a major producer of Pt and Cu. OM’s results for 2007 will reflect the nickel business as a discontinued operation. Net sales for the six months ended June 30, 2007, were $447.5 million versus $317.6 million for the comparable period in 2006.
Gross profit rose to $155.9 million in the first half of 2007 compared with $84.7 million in the first half of 2006. As a percentage of net sales, gross profit increased to 34.8% from 26.7%.