China Industrial Steel Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter Ended September 30, 2012
November 16, 2012 at 09:45 am EST
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China Industrial Steel Inc. reported unaudited consolidated earnings results for the second quarter ended September 30, 2012. For the quarter, the company's total revenues were $169,550,216 against $225,955,836 a year ago. Loss from operations was $3,122,899 against income from operations of $22,624,687 a year ago. Loss from operation before income tax was $3,748,280 against income from operation before income tax of $21,242,479 a year ago. Net loss was $3,748,280 or $0.05 per basic and diluted share against net income of $18,354,951 or $0.25 per basic and diluted per share a year ago. Price declines accounted for a revenue drop of approximately $59 million; however the company was able to mitigate some of the negative impact with revenues generated from the increased sale of steel wire. The decrease of net income was attributable primarily to an industry-wide decrease in the sales price of steel products.
For the six months, the company's total revenues were $492,151,233 against $630,279,953 a year ago. Income from operations was $7,914,119 against $46,197,760 a year ago. Income from operation before income tax was $4,190,673 against $42,050,724 a year ago. Net income was $2,806,281 or $0.04 per basic and diluted share against $36,191,932 or $0.49 per basic and diluted per share a year ago.
China Industrial Steel Inc. (CIS) is a holding company. The Company, through its wholly owned subsidiary, Nuosen (Handan) Trading Co. Ltd (Nuosen), and its variable interest entity (VIE) Handan Hongri Metallurgy Co., Ltd. (Hongri Metallurgy), produces and sells steel plate, steel bar, steel wire and steel billet. Steel plate, steel wire and steel bar are primarily used in the construction of buildings and in infrastructure projects, including roads and bridges. The Company also manufactures and sells steel billet, a semi-finished product, which is utilized as a raw material by other manufacturers. CIS also sells some of the byproducts of its production process, including offcuts of steel plate and steel drop. In total, the Company has an aggregate capacity of 2.3 million metric tons of steel and 2.6 million metric tons of steel rolling production capacity, including steel plate and steel wire/bar.