Thursday, copper-clad bimetallic wire manufacturer, Fushi Copperweld, Inc. (FSIN), reported a drop in net income for the fourth quarter, reflecting lower copper prices and decreased sales volumes. The company also provided its outlook for the first quarter.
The Dalian, China-based company posted a fourth quarter net income of US$4.58 million or US$0.15 per share, lower than the profit of US$9.31 million or US$0.34 per share in the same period last year.
Fushi Copperweld noted that earnings during the quarter were affected by lower copper prices and decreased sales volumes from its Dalian and Fayetteville facilities.
Revenues for the quarter totaled US$41.07 million, down from US$48.98 million in the prior-year comparable period.
Operating expenses declined to US$5.55 million from US$6.66 million in the fourth quarter of 2007. Gross profit was US$8.88 million or 21.6% of revenues, compared to US$14.58 million or 29.8% of revenues last year.
For fiscal year 2008, Fushi Copperweld reported a drop in net income to US$28.47 million or US$1.00 per share from a profit of US$29.51 million or US$1.19 per share a year ago. Revenues for the year totaled US$221.43 million, up 72.7% from US$128.22 million reported for the prior year.
For the first quarter of fiscal 2009, the company expects earnings to be in the range of US$0.10 to US$0.15 per share. In the year-ago first quarter, the company posted a net profit of US$7.6 million or US$0.26 per share.
Fushi Copperweld correlated the expected decline in first quarter to the timing of the Chinese New Year, during which its operating facilities would be closed for two weeks. The company, however, anticipates a benefit in the second half of the year from the government stimulus package and sees strong demand in 3-G related businesses.
FSIN is currently trading at US$4.25, down 4.49% or US$0.20, on a volume of 44,352 shares on the Nasdaq.
For comments and feedback: editorial@rttnews.com