China Gerui Advanced Materials Group Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported revenue of $32,709,589 compared to $43,078,588 a year ago. Operating loss was $625,254 compared to operating income of $914,904 a year ago. Loss before income taxes was $1,367,468 compared to $816,206 a year ago. Net loss was $1,367,468 or $0.02 per basic and diluted share compared to $845,772 or $0.01 per basic and diluted share a year ago. Non-GAAP EBITDA was $2,849,359 compared to $4,023,087 a year ago. The decrease in revenue was primarily due to a 4.6% decrease in the company's average selling price to $660 per ton for the second quarter of 2014 as compared to an average selling price of $692 per ton for the second quarter of 2013. The decrease in operating income in the second quarter of 2014 was primarily due to a 51.8% decrease in gross profit.

For the six months period, the company reported revenue of $59,149,322 compared to $88,689,295 a year ago. Operating loss was $4,424,467 compared to operating income of $2,984,048 a year ago. Loss before income taxes was $5,551,839 compared to $771,456 a year ago. Net loss was $5,551,839 or $0.09 per basic and diluted share compared to $940,846 or $0.02 per basic and diluted share a year ago. Net cash used in operating activities was $226,582,198 compared to $22,457,752 a year ago. Cash paid for property, plant and equipment was $6,981,618 compared to $7,855,584 a year ago. Non-GAAP adjusted EBITDA was $2,662,495 compared to $9,091,639 a year ago.

The company is revising its full year 2014 revenue guidance to the range of $100 million to $110 million reflecting the company's view of continued weakened demand for its products, volatile pricing pressure in the sector and an unexpected one-time production interruption in the third quarter due to a public works project in Xinzheng City.