OM Group 1Q profit falls on higher production costs

Net income fell to $55.2 million, or $1.81 per share, from $114.8 million, or $3.85 per share, in the 2007 first quarter.

Excluding one-time costs and gains, the company earned $1.90 per share, compared with $1.25 last year.

Sales more than doubled to $480.8 million from $216.2 million. Sales soared on higher cobalt prices, strong business growth in key markets and earnings from newly acquired companies.

Analysts polled by Thomson Finance expected profit of $2.03. Analysts typically exclude one-time costs and gains.

OM had higher costs this quarter, with the cost of product sold jumping to $344.1 million from $144 million last year.

It also said that it had higher net income in 2007 because of a gain of $72.3 million on the sale of its nickel business in that quarter.