China Armco Metals
China Armco Metals is engaged in China in the sale and distribution of metal ore and non-ferrous metals to the metal refinery industry in China
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China Armco Lowers 2010 Revenue and Profit Guidance Due to Blackouts
China Armco Metals (AMEX:CNAM), a distributor of imported metal ore and a metal recycler in China, announced today that its annual financial results will be negatively affected as a result of scheduled blackouts in the Lianyungang enterprise zone, where the company operates its metal recycling plant.
The blackouts are part of Jiangsu Provincial Government's efforts to meet annual industrial energy usage targets set by the central government.
The energy restrictions are expected to decrease the company's revenue in 2010 by as much as $40 million, prompting a revision in its 2010 guidance to net income and sales exceeding $8 million and $140 million, respectively. Previously, the company expected 2010 revenues to exceed $180 million and net income to exceed $10 million. In 2009, the company recorded net income of $5.1 million on revenue of $86.9 million.
Despite the temporary setback, its recycling operations will recover as production utilization rates increase, the company said.
For the quarter ended June 30, 2010, the company had current assets of $32.3 million, about 10% of which was cash. Current liabilities and long term debt totalled $21.7 million.
Last month, the company added nine additional cutting machines to expand production capacity at its metal recycling facility. The recycling facility, located in Lianyungang, China, is expected to be capable of recycling one million metric tons of scrap metal per year.
China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel billet. The company also engages in metal recycling through its wholly-owned subsidiary, Armet Renewable Resourced.
Other China Armco Metals news
- China Armco shares up 17% on iron ore distribution deal with Brazilian steel giant Mineracao Usiminas
2011-03-18 - China Armco Metals takes 19.9% stake in iron ore junior Apollo Minerals
2010-06-09 - China Armco Metals reports strong Q2 results
2009-08-17
