China Green Agriculture shares rise 9%, Gufeng subsidiary boosts Q4 sales
China Green Agriculture (NYSE:CGA) said Friday that fourth-quarter profits grew 57% to $9.4 million from $6 million a year earlier. Diluted earnings per share improved to $1.27 from 91 cents in the year-ago quarter.
As at 11.28am, shares of the producer and distributor of humic acid-based compound fertilizers were up 9% at $4.82.
Sales for the three months ending June 30 increased three-fold to $179.7 million from $52.1 million a year earlier due to the inclusion of newly-acquired fertilizer subsidiary Gufeng, which contributed 66.8% of sales.
China Green Agriculture's chairman and CEO, Li Tao, said: "We are particularly happy with our progress in integrating and expanding Gufeng which we acquired in July 2010. I believe that we have established a solid track record that we can replicate in the future."
"While demand for fertilizer products continues to grow, our strong working capital positions us well to increase market share in an industry that will continue to consolidate."
Looking ahead, the company said that for the first quarter ending September 30, management expects net sales of between $46.8 to $50.0 million, with net income of $7.1 to $7.9 million, and earnings per share in the range of $0.26 to $0.29.
For the full year ending June 30, 2012, the company expects net sales of $209.6 to $224.6 million, with net income of $37.1 to $39.8 million, and earnings per share of $1.38 to $1.48.
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