Fushi Copperweld posts 40% rise in Q3 profits
Fushi Copperweld (Nasdaq: FSIN), a global manufacturer of copper wire, posted a 40% rise in its third quarter profits on Tuesday, helped by strong copper prices and a rise in sales volumes from its US facility.
Copper-clad bimetallic wire is used in a variety of telecommunication, utility, transportation and other electrical applications.
For the third quarter, net income was $12.9 million, or $0.34 per diluted share, compared with profits of $9.2 million, or $0.31 per diluted share, in the prior year quarter. These results include expenses of $176,000, as well as net interest income of $154,274.
Adjusted for one-time items, net income was 13.0 million in the period, or $0.34 per diluted share, up from $7.6 million, or $0.26 per diluted share, in the third quarter of 2009.
Revenues increased 39.5% to $66.5 million, reflecting organic growth on account of copper prices, as well as a 32% increase in sales volumes from the company's US facility, which offset a slight decline in sales volumes within China.
"While we experienced some slowdown within certain sectors in China, the subsequent volume declines were mostly offset by growth from our U.S. facility, which supplies product to a variety of markets including Europe, South America and the Middle East," said co-CEO Joe Longever.
The company said it also saw a decrease in demand from telecom customers related to the 3G build out in China, but also saw a pick up in sales in the utility market. Fushi will continue to increase its global presence, particuarly in emerging markets, it said, where countries invest in critical infrastructure build outs.
By quarter-end, the company's cash position stood at $117.9 million. Long-term debt totaled $5.9 million, compared to $32.7 million at December 31, 2009.
Based on its results, the company said it expects adjusted fully diluted earnings per share to be between $0.29 and $0.31 for the fourth quarter, and between $1.25 and $1.29 for the full-year. The company's fourth quarter forecasts are said to be below analyst earnings estimates of $0.33 per share.
Despite its third quarter financials, Fushi was down more than 8% today, at $9.00 as of 12:10pm ET.
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