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.