WUHAN, Hubei, China, -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today announced 2007 fourth quarter and year financial results for the period ended December 31, 2007.
2007 Fourth Quarter Highlights:
-- Net sales increased to US$37.7 million, reflecting 36.3% year-over-year
growth;
-- Net income was US$2.2 million, reflecting 52.6% year-over-year growth;
and
-- Diluted earnings per share were US$0.09, reflecting 48% year-over-year
growth.
2007 Full Year Highlights:
-- Net sales increased to US$133.6 million, reflecting 39.5% year-over-
year growth;
-- Net sales from steering components for passenger and light-duty
vehicles increased to US$83.9 million, reflecting 39.3% year-over-year
growth;
-- Net sales from steering components for commercial vehicles increased to
US$35.8 million, reflecting 42.3% year-over-year growth;
-- Net income was US$8.9 million, reflecting 84.1% year-over-year growth;
and
-- Diluted earnings per share were US$0.37, reflecting 76.2% year-over-
year growth.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, commented, "2007 was a strong year for China Automotive Systems as we demonstrated our ability to continue to grow revenue and expand market share, and also achieved scalability and increased our bottom line at a faster pace than revenues. With the established economies-of-scale, expanded tier 1 customer portfolio and the arrival of new capital, we are confident we can continue to leverage our state-of-the-art manufacturing facility to generate strong results and further build shareholders' value in 2008.''
Fourth Quarter 2007:
Total net sales for the fourth quarter of 2007 were US$37.7 million as compared with US$27.7 million reported in the same period for 2006 and US$31.2 million for the third quarter of 2007. This sales increase reflects 36.3% year-over-year growth and 20.8% quarter-over-quarter growth, respectively.
Gross profit for the fourth quarter of 2007 increased to US$12.7 million compared with US$8.5 million in the same period for 2006, and US$11.4 million for the third quarter of 2007, reflecting a 48% increase year-over-year and a 11.5% quarter-over-quarter growth, respectively. Operating income for the fourth quarter of 2007 was US$3.5 million, compared with US$3.6 million reported in the same period of 2006 and US$6.6 million for the third quarter of 2007, reflecting a decrease of 2.8% year-over-year and a decrease of 47.2% quarter-over-quarter, respectively. Higher fourth quarter operating expenses included R & D of $756,759 compared with $321,533 in the third quarter of 2007. Selling expenses rose due to a greater number of products shipped as well as higher fuel costs, and greater after sales service costs. General and Administrative expenses were also above last year's quarter due to more travel costs, more supplies to support a larger organization, bonuses to management and one-time repair fees for the 10th anniversary of Henglong, one of the Company's subsidiaries.
Net income for the fourth quarter of 2007 was US$2.2 million, or US$0.09 per diluted share as compared with US$1.4 million, or US$0.06 per diluted share in the same period a year ago and US$2.6 million, or US$0.11 per diluted share, for the third quarter of 2007.
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