Key Technology projects profits drop

- Last updated on GMT

Related tags: Proposal, Abn amro, Profit

Key Technology, the US-based manufacturer of food processing
presses, issued earnings guidance for its fiscal third quarter and
said it received formal proposals from Banner Bank and ABN Amro
Bank for concurrent credit facilities totalling $20 million (€20m).

Key Technology, the US-based manufacturer of food processing presses, issued earnings guidance for its fiscal third quarter and said it received formal proposals from Banner Bank and ABN Amro Bank for concurrent credit facilities totalling $20 million (€20m).

The company said it expects to report revenue of about $20 million, compared revenue of $20.5 million a year earlier.

Key Technology's backlog at the end of the third quarter was about $18.3 million, which management expects to contribute to a profitable fourth quarter.

In a press release, the company also said the proposed new credit facilities, if completed, would replace its current credit facility, the majority of which was scheduled to expire in November.

Completion is expected to occur in late July or early August, subject to the completion of documentation and other conditions.

Key expects to use the credit facilities for general corporate purposes, including financing working capital needs.

"The proposal for these facilities demonstrates confidence in Key Technology and if closed on the terms proposed by the banks, should resolve the uncertainty regarding the impact of redemption obligations on the company's financial capacity and future strategic direction,"​ the company said.

Key added it is "in a much improved financial and operational position to achieve sustained profitability."

Related topics: Processing & Packaging

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