The profit reduction was due to a US$2.3 write-down associated with earlier financing. Quarterly profits at the rare earth magnetic powder manufacturer were down year-on-year from US$7.5 million to US$5.7 million, while sales soared to US$63.1 million from US$42.2 million for the same period last year. Sales in 2006 totalled more than US$183 million.

Neo Materials operates in two divisions, Magnequench and AMR Performance Materials. The Magnequench division primarily manufactures and distributes neodymium magnetic powder, which is used to make bonded magnets for various electronic and mechanical products. It serves various industries, including computer storage devices, office automation, automotive, and appliance industries. The AMR Performance Materials division manufactures and distributes various rare earth and zirconium-based engineered products. Its products include cerium, lanthanum, neodymium, yttrium, and yttrium-europium co-precipitates. It offers its products principally to the automotive catalyst, electronics, ceramic, and glass industries.