Friday, ShengdaTech Inc. (SDTH) reported a 66.3% rise in second-quarter net income compared with the prior-year quarter, on a 75.7% growth in revenues. The company noted revenue growth reflected higher selling prices and increased demand for products.
The Shandong, China-based company's second-quarter net income rose 66.3% to $10.0 million from $6.0 million in the same period last year. On a per share basis, earnings for the quarter were $0.18, compared with $0.11 in the second quarter of 2007.
Revenues for the second quarter increased 75.7% to $39.8 million from $22.7 million in the same quarter of 2007. Revenue growth was also attributed to capacity expansion with three new stainless steel nano-precipitated calcium carbonate or NPCC production lines added in April 2008.
Revenue from NPCC products for the period increased 76.4% to $19.1 million from $10.8 million last year.
Operating income for the second quarter climbed 92.9% to $12.7 million, from $6.6 million in the same period a year ago. Gross margin for the quarter was 36.8%, up from 33.8% in the similar period of 2007.
For the first six months of 2008, total revenue was $68.4 million, up 52.5% from last year. Net income for the period was $17.4 million, up 52.5% from $11.4 million in the previous year. Earnings per share were $0.32 for the first six months, compared with $0.21 last year.
Looking ahead, ShengdaTech announced plans to acquire Jinan Fertilizer Co., Ltd, a state-owned nitrogenous fertilizer company based in Jinan, the capital of Shandong Province. The company estimates that once Jinan Fertilizer achieves full operations in 2008, it could yield annual sales of approximately three times the current sales of ShengdaTech's existing chemical business.
SDTH ended Friday's regular trading up 0.32% at $9.38, and gained a further 1.71% in the after-market trade to end at $9.51 on the Nasdaq.
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