China Gerui's Q4 earnings flat, but revenues top estimates
China Gerui Advanced Materials Group (NASDAQ:CHOP) said Thursday its fourth quarter earnings were nearly unchanged from the previous year as revenue growth was offset by higher operating expenses.
For the quarter ending December 31, the Chinese cold-rolled strip steel producer reported net income of $11.3 million, or 23 cents per diluted share, in line with analyst estimates. That compares to a net income of $11.4 million, or 27 cents per diluted share, for the year-ago period.
Meanwhile, revenues increased 15.6% year-over-year to $66.1 million, topping analyst estimates of $63.9 million. But operating expenses grew even faster, more than doubling to $2.8 million.
For the entire 2010, the company's net income was $47.1 million, or $1.01 per diluted share, up 8.4% from $43.4 million, or $1.15 per diluted share, for 2009. Revenues rose 16% to $253.9 million as the company stepped up capacity utilization rates.
Previously, China Gerui said it was building two new cold-rolled steel production lines with a total annual capacity of 0.15 million tons. The company said today the two new cold-rolled production lines are expected to begin operations sometime in the current quarter.
For fiscal year 2011, China Gerui re-iterated that it expects revenues between $330 and $345 million, and diluted earnings per share between $1.20 and $1.25. Its shares rose 4.2% to trade at $4.96 as of 1:23 pm EST.
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