China-based Ossen Innovation Co., Ltd. (OSN: Quote), a coated steel materials maker, Friday announced a plunge in profit for its second quarter as sharply lower gross margin and increased operating expenses offset a rise in revenues.
Net income attributable to the company for the second quarter was $0.65 million or $0.003 per share, compared to $3.6 million or $0.18 per share in the prior year.
Gross profit for the quarter decreased to $2.2 million from $6.8 million, and gross margin fell to 7.1% from 23.3%. This was due to the price decreases of some products because of the tough market conditions in the infrastructure sector in China.
Net revenues for the quarter rose by 9% to $31.60 million from $29.04 million in the year ago period. Sales of coated pre-stressed steel materials were up 16% compared to a year ago, due to overall higher demand of coated pre-stressed steel materials.
Shares of Ossen Innovation closed at $0.90, down 9.07%on the Nasdaq.
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by RTT Staff Writer
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