Daily Business News Mongolia

LONDON (SHARECAST) - Speciality metal producer and recycler Metal-Tech crumpled today on news that the weaker dollar versus the Israeli Shekel will mean interim pre-tax profits falling “significantly” below expectations.

A 13% drop in the value of the dollar versus the Israeli currency since the end of last year has prompted a big increase in the cost of sales, operating expenses and finance expenses, it said.

Meanwhile, revenue for the first six months of 2008 significantly higher than management expectations has not translated into better operating profit due to the higher cost of labour and consumables.

The group also expects full year pre-tax profit to be significantly below expectations, partly due to increased investment in R&D, business development, recruitment costs and the cost of a new management team.

“By the end of the year we expect to improve efficiency of production in Mongolia and to have on board a new management team with broad international experience, focused on current operations and the development of transformational business opportunities,” said CEO Jonathan Ben-Cnaan.

SOURCE: www.sharecast.com

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