China Gerui Advanced Materials Group Ltd. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2012; Revises Earnings Guidance for the Year 2012
November 20, 2012 at 06:00 am EST
China Gerui Advanced Materials Group Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported revenue of $56,123,028 against $101,073,420 a year ago. The decrease in revenue was primarily due to a 33.1% decrease in the Company's average selling price of $698 per ton for the third quarter of 2012 as compared to an average selling price of $1,044 for the same period of 2011 as well as a 17.3% decrease in sales volume to approximately 80,386 tons for the third quarter of 2012 as compared to approximately 97,185 tons for the same period of 2011. Operating income was $5,868,197 against $28,702,670 a year ago. The decrease in operating income in the third quarter 2012 as compared to operating income in the comparable year-ago period is primarily due to the corresponding decrease in gross profit and relatively higher operating expenses as a percent of revenue in the third quarter of 2012 compared to the same period of 2011. Income before income taxes was $4,018,005 against $28,909,233 a year ago. Net income was $2,381,586 or $0.04 per basic and diluted share against $21,390,601 or $0.37 per basic and diluted share a year ago.
For nine months, the company reported revenue of $201,596,558, operating income was $41,674,829, income before income taxes was $38,199,738, net income was $26,667,471 or $0.46 per basic and diluted share. Net cash used in operating activities was $29,413,962 against net cash provided by operating activities of $47,878,082 a year ago. Cash paid for property, plant and equipment was $5,887,409 against $30,912,597 a year ago.
The company is revising its guidance for the year 2012. For the year, the company lowering revenue guidance to be in the $265 million to $270 million range, below previously announced revenue guidance range of $290 million to $305 million. The company is also lowering its earnings per share guidance range to $0.65 to $0.70 per share below its previously announced guidance range of $0.75 to $0.85 per share.