Gengsheng Minerals
China Gengsheng Minerals Inc (OTC:CHGS), a manufacturer of industrial materials capable of withstanding high temperatures, and energy saving materials,
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China GengSheng Minerals' shares drop as Q4 results disappoint
Shares of China GengSheng Minerals (AMEX:CHGS), a Chinese industrial materials manufacturer, tumbled in pre-market trading on Thursday morning after the company reported a fourth quarter loss when analysts expected profits.
Since the announcement, the company's shares fell 11% on the pre-market to trade at $3.11 as of 9:04 am EST.
For the quarter ending December 31, net loss attributable to the company was $2.1 million, or 8 cents per diluted share, falling far short of the 5 cents per share profit analysts had expected.
The company said the loss was mainly due to lower gross margin, higher operating and financial costs, as well as an increased amount of accounts receivables that may go uncollected.
Gross margin for the quarter fell to 20.7% from 25.3% as raw material prices rose.
Meanwhile, revenues increased 21.8% year-over-year to $18.6 million, helped by increased sales of fracture proppant and abrasive products. Revenue from the company's refractory products, its core product line, fell 6.5%, however, to $12.7 million. Total sales trailed the $19 million expected by analysts.
For 2010, net income attributable to the company was $0.3 million, or one cent per share, compared with net income of $5.6 million, or 23 cents per share, in 2009. Revenue rose 9.2% to $62.2 million.
Other Gengsheng Minerals news
- Gengsheng wins RMB2.3m subsidy from Henan government to support new solar line
2009-09-15 - Gengsheng starts production of fine precision abrasives
2009-07-31 - Gengsheng sales up, but profits down on higher material costs
2009-04-02
