Li-Cycle Holdings, a battery recycling company, has reported a significant decrease in earnings due to rising costs.
Financial Performance In the quarter ending on September 30, the company posted a loss of $130.5 million, or 73 cents per share, compared to a loss of $20.6 million, or 12 cents per share, in the same period last year. Analysts surveyed by FactSet were expecting a loss of 25 cents per share. Net sales also dropped from $2.8 million to $4.7 million, which was lower than the estimated $2.8 million.
Construction Pause On October 23, Li-Cycle Holdings announced that construction work on its Rochester Hub project would be put on hold. Initially planned with a budget of $560 million, the project is now projected to cost anywhere between $850 million and $1 billion.
Operating Expenses The company’s operating expenses for the third quarter increased by 245% compared to the previous year. This surge was primarily driven by the noncash Rochester Hub impairment charge, as well as higher personnel costs, plant facility expenses, and research and development expenses.