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.