NEW YORK, May 15, 2012 /PRNewswire-Asia/ — Asia Carbon Industries, Inc. (“Asia Carbon“, or the “Company”) today announced its earnings for the quarter ended March 31, 2012. The Company, whose shares trade in the U.S. on the OTCQB Tier of the OTC Markets under the stock symbol “ACRB”, filed its quarterly report on Form 10-Q with the Securities and Exchange Commission on May 15, 2012.
Highlights of First Quarter 2012 Financials
- Revenues for the quarter ended March 31, 2012 were $12.6 million, down 6% from $13.4 million for the same period in 2011.
- Gross profit was $2.93 million in the quarter ended March 31, 2012, a decrease of 8% from $3.18 million for the same period in 2011.
- Net income for the quarter ended March 31, 2012 was $1.81 million, a decrease of 14% from $2.11 million for the same period in 2011.
- Earnings per share remained at $0.04 for the quarter ended March 31, 2012 and 2011, respectively.
- Tonnage sales of carbon black increased to 12,573 tons in the quarter ended March 31, 2012, up 3.5% from 12,140 tons in the same period in 2011.
- Naphthalene oil sales more than doubled to 1,050 tons in the quarter ended March 31, 2012, as compared to 500 tons in the same period of 2011.
Sales for the three months ended March 31, 2012 totaled $12,581,692, a decrease of $859,824, or 6%, compared to $13,441,516 for the comparable period of 2011. The decline in sales was mainly attributable to the decrease in the market selling price of carbon black.
Unit sales of carbon black products increased to 12,573 tons in the quarter ended March 31, 2012, up 3.5% from 12,140 tons for the same period in 2011, while the average sales price of these products decreased 13% to $933 per metric ton in the quarter ended March 31, 2012 from $1,070 per ton in the quarter ended March 31, 2011. This decline of unit sales price was somewhat offset by the increase in unit sales.
The Company’s total carbon black production capacity was 61,000 tons per annum as of March 31, 2012 and 2011, respectively. The annualized production/total capacity utilization rate was 82% and 80%, respectively, during three months ended March 31, 2012 and 2011.
Gross profit was $2,925,952 in the three months ended March 31, 2012, a decrease of $255,480, or 8%, compared to $3,181,432 in the three months ended March 31, 2011. The gross profit rate was 23% for the three months ended March 31, 2012, compared to 24% for the same period in 2011.
Net income for the first quarter was $1,807,081 a decrease of 14%, compared to $2,105,473 in the three months ended March 31, 2011. Net income per share was $0.04 in in the quarter ended March 31, 2012 and 2011, respectively.
Yao Guoyun, Asia Carbon‘s Chairman of the Board and Chief Executive Officer, commented, “I am pleased with Asia Carbon‘s performance this quarter. Carbon black unit sales increased 3.5% and naphthalene oil sales more than doubled compared to the same period of 2011. And while our results were affected by depressed carbon black market prices, we believe this trend has reversed and anticipate that prices will shortly return to previous levels.”
Ms. Yao further stated, “Carbon black is a critical material for tire manufacturers, and China‘s tire production continues to increase. This is true for our customers, many of whom are expanding their operations. In order to meet continuing demand for our products, management is evaluating a number of options to build capacity, both organically and through acquisitions. Either alternative would be funded through a combination of operating income and outside sources.”
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high quality carbon black products under the brand name “Great Double Star”. The Company was established in 2003 in Shanxi, China‘s highest coal producing province. Asia Carbon is one of the top ten carbon black producers in the province and has established relationships with a high-profile customer base. The Company went public in 2010 through a registration statement on Form S-1 which was declared effective by the SEC on October 26, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.
This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Asia Carbon Industries, Inc.
SOURCE Asia Carbon Industries, Inc.