China Gerui Advanced Materials Group, a leading high precision, cold-rolled strip steel producer in China, yesterday announced unaudited financial results for the fourth quarter and full year ended December 31, 2010, posting increases across the board.
Fourth-quarter revenue increased 15.6 percent to $66.1 million in the fourth quarter of 2010 compared to $57.2 million in the fourth quarter of 2009.
The company reported its gross profit increased 15.4 percent to $19.6 million in the fourth quarter of 2010 from $17.0 million in the same period of 2009. Gross margin remained flat at 29.7 percent in the fourth quarter of 2010.
Net income was $11.3 million in the fourth quarter of 2010, or $0.23 per diluted share, compared to $11.4 million, or $0.27 per diluted share in the same period of 2009.
For full-year 2010, China Gerui reported a 16 percent increase in revenues to $253.9 million from $218.9 million in 2009.
Gross profit increased 15.5 percent to $76.0 million from $65.8 million in 2009. Gross margin was 29.9 percent, reflecting almost no change in 2010 compared to the 30.1 percent level achieved in 2009.
Net income increased 8.4 percent to $47.1 million in 2010, or $1.01 per diluted share, from $43.4 million, or $1.15 per diluted share, in 2009.
Mingwang Lu, chairman and CEO of the company, said its full-year 2010 sales growth was driven by a ramp-up in production capacity and the company’s ability to produce high-value products.
“We believe that we are able to maintain our above-industry average gross margin because we make customized, high value-added products that our customers want. We believe that our customers choose us over our competitors for a number of reasons. We believe our brand name and reputation in China is strong and our fully in-house production process has helped make our products known for high quality and precision,” Lu stated in the press release. “… Finally, we have a strong R&D capability in our view and continue to offer new product offerings in a cost-effective manner that our clients are interested in. We have been operating at full capacity to meet the high demand and are pleased to have our new facilities beginning to come online in 2011.”
As of December 31, 2010, China Gerui reported $119.5 million in unrestricted cash and an additional $66.5 million in restricted cash, as compared to $79.6 million and $37.5 million, respectively, as of December 31, 2009. Working capital was $66.7 million compared to $49.3 million at the end of 2009. Shareholder’s equity was $167.8 million, as compared to $87.0 million at the end of 2009. The company has no long-term debt. Operating cash flow increased 8.0% to $36.5 million compared to $33.8 million last year.
China Gerui reiterated its previous fiscal year 2011 guidance, saying it expects revenue of between $330 million and $345 million, gross profit of between $115 million and $120 million, net income of between $70 million and $75 million, diluted earnings per share between $1.20 and $1.25, and capital expenditures to complete its previously announced phase II of expansion plan of between $12 million and $15 million.
For more information visit www.geruigroup.com
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