Lihua International Inc., a leading Chinese developer, designer and manufacturer of low-cost, high-quality alternatives to pure copper products, yesterday announced financial results for the first quarter ended March 31, 2011.
Sales for the first quarter of 2011 increased 117 percent to $136.9 million compared with sales of $63.2 million in the first quarter of 2010.
Gross profit for the first quarter of 2011 was $16.9 million, up 43 percent from gross profit of $11.8 million for the first quarter of 2010. Gross margin decreased to 12.3 percent in the first quarter of 2011 from 18.7 percent for the same period last year.
Net income for the first quarter of 2011 was $12.5 million, or $0.41 per share, compared with net income of $8.9 million, or $0.34 per share, for the same period in 2010.
As of March 31, 2011, Lihua reported $90.7 million compared with $90.6 million as of December 31, 2010. As of March 31, 2011, Lihua had total debt of $2.3 million.
For 2011 the company said it expects strong demand in China to drive gross profit to be between $80.0 million and $82.0 million, and non-GAAP net income between $52.0 million and $54.0 million, representing year-over-year growth of 29 percent-32 percent and 30 percent-35 percent, respectively.
“2011 has gotten off to an excellent start for Lihua, both operationally and strategically. We continue to grow our business thanks to the sizeable end market demand for our products, while positioning the company for further success in the long-term. Construction at our new copper recycling facility, which will double our production capacity to 100,000 tons, is proceeding according to plan, and we are making progress toward fulfilling the final requirement necessary for our import license. Each of these events represents a significant catalyst for Lihua, and they will be instrumental in taking the company to its next level of operational and financial success,” Jianhua Zhu, chairman and CEO of Lihua stated in the press release.
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