Bimetallic wire products maker Fushi Copperweld Inc. (FSIN), Friday reported a third quarter profit that increased from last year, on higher gross margins and lower expenses that more than offset a 25% fall in revenues for the period. Looking ahead, the company provided its earnings forecast for the fourth quarter.
Fushi reported third quarter net income of $9.19 million, compared with $9.05 million last year. Earnings per share for the quarter was $0.31, flat with the year ago quarter.
Excluding one-time charges, adjusted net income was $7.53 million, compared with $9.4 million in the prior year quarter. Adjusted earnings per share was down at $0.26, compared to $0.33 a year earlier.
On average, 3 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
The company whose products serve the telecommunication, electrical utility and transportation industry reported third quarter revenues of $47.7 million, compared to $63.8 million last year. Analysts expected revenues of $55.37 million for the quarter.
Fushi said lower raw material prices pushed selling prices down 21.6%, yielding lower revenues for the period.
Lower costs saw gross margins improving 530 basis points for the period at 31.8%, compared to 26.5% last year.
Income from operations for the quarter declined to $10.58 million from $12.25 million last year. Operating income increased 300 basis points to 22.2% of revenues from 19.2% last year
Total operating expenses declined to $4,59 million from $ 4.64 million in the prior year quarter. Total other expenses were $0.49 million, compared with $1.73 million recorded last year.
For the nine months ended September 30, the company posted a net income of $13.86 million or $0.48 per share compared with $23.9 million or $0.83 per share in the same period of 2008. Total revenues for the nine-month period declined to $131.23 million from $180.37 million last year.
For the fourth quarter of this year, the company expects adjusted earnings before the impact of non-cash expense related to stock-based compensation between $0.26 and $0.30 per share. Analysts anticipate the company to earn $0.29 per share for the October-December period.
FSIN is currently at $6.69, losing 21 cents or 3.04% on the Nasdaq.
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