China Industrial Steel Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter Ended June 30, 2012
August 20, 2012 at 09:45 am
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China Industrial Steel Inc. reported unaudited consolidated earnings results for the second quarter ended June 30, 2012. For the quarter, the company's total revenues decreased $71,226,932, or 33% to $145,572,369 against $216,799,301 a year ago. Approximately $13.3 million, or 19% of the decrease was due to a decrease in the average sales price and 81% was due to decrease in the quantity sold offset by the new steel wire products. Income from operations was $3,455,097 against $13,780,429 a year ago. Income from operation before income tax was $2,212,519 against $12,530,452 a year ago. Net income was $1,848,517 or $0.03 basic and diluted per share against $10,704,209 or $0.15 basic and diluted per share a year ago. Net income decreased $8,855,692, or 83%. The decrease of net income was attributable primarily to the decrease in revenue, gross profit margin and an increase in selling, general and administrative expenses.
For the six months, the company's total revenues were $322,601,017 against $404,324,117 a year ago. Income from operations was $11,037,018 against $23,573,075 a year ago. Income from operation before income tax was $7,938,953 against $20,808,247 a year ago. Net income was $6,554,561 or $0.09 basic and diluted per share against $17,836,983 or $0.24 basic and diluted per share a year ago.
China Industrial Steel Inc. (CIS) is a holding company. The Company, through its wholly owned subsidiary, Nuosen (Handan) Trading Co. Ltd (Nuosen), and its variable interest entity (VIE) Handan Hongri Metallurgy Co., Ltd. (Hongri Metallurgy), produces and sells steel plate, steel bar, steel wire and steel billet. Steel plate, steel wire and steel bar are primarily used in the construction of buildings and in infrastructure projects, including roads and bridges. The Company also manufactures and sells steel billet, a semi-finished product, which is utilized as a raw material by other manufacturers. CIS also sells some of the byproducts of its production process, including offcuts of steel plate and steel drop. In total, the Company has an aggregate capacity of 2.3 million metric tons of steel and 2.6 million metric tons of steel rolling production capacity, including steel plate and steel wire/bar.