Longhai Steel Inc., producer of high quality steel wire products in the People’s Republic of China, today announced preliminary results for the Fourth Quarter of 2011, subject to any final audit adjustments.

Financial highlights for Fourth Quarter 2011 include:

Fourth Quarter 2011 steel wire sales revenue of $197.3 million compared with revenues of $144.5 for the same period of 2010, an increase of 36.5%;
Fourth Quarter 2011 net income of $6.3 million compared with net income of $4.6 million for the same period of 2010, an increase of 36.4%
All results are subject to any final audit adjustments, and will be filed in final form with our Annual Report on Form 10-K by March 30

Mr. Steven Ross, Executive Vice President of Longhai, said, “As the newly opened steel wire facility continues to ramp output, we expect to see continued year-over-year improvements in operating results throughout 2012. Although current production from our new facility utilizes the same raw material as our other production lines, over the next two quarters we expect to transition to higher quality steel wire to enable us to produce high quality and high margin products. We will continue to keep our shareholders updated on company developments.”

Once fully ramped, the new facility will increase our overall capacity by approximately 60%, and have the capability to produce alloy steel, cold forging steel and welding rods. These higher margin products will allow Longhai to also address demand in additional markets beyond construction and infrastructure.

To learn more about the company, visit www.longhaisteelinc.com

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