China Precision Steel posts robust revenues for FY08 Q1
Precision steel processing company China Precision Steel (Nasdaq: CPSL) this morning reported surging revenues, but unchanged net income for its first quarter of 2008.
For the three months ended Sept. 30, the Hong Kong-based firm recorded revenue of $25.3 million, up 141% from $10.5 million in the first quarter of fiscal 2007. Revenue climbed on account of increased sales of high carbon and low carbon cold rolled steel from the company's increased capacity and the continued development of its brand in China.
Net income was $2.9 million, or $0.08 per share, compared with net income of $2.9 million, or $0.12 per share, in the third quarter of 2006. No analyst estimates were available.
The firm also updated its outlook, stating that its new cold-rolled mill with 150,000 metric tons of design capacity is expected to reach 50% utilization by the end of calendar year 2007. China Precision also said it has plans to commence the construction of a third mill with 150,000 metric tons of capacity in the first quarter of 2008.
Additionally, China Precision said it will begin construction on a third mill in the beginning of 2008, using $44 million in funds raised through a registered direct financing.
The company noted that it has also spearheaded several new R&D projects, including cold rolled steel used in drawer guidance rails and in double layer welded pipes for various industrial applications.
Shares of China Precision Steel (CPSL) edged up $0.10, or 2.33%, to $4.40 ahead of the opening. Shares of China Precision Steel have been trading in the range of $2.58 to $16.58 for the past 52 weeks.
