BEIJING, June 25, 2014 /PRNewswire/ -- General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, today announced that the Company is confident in its business turnaround and currently estimates earnings per share ("EPS") of $0.08 to $0.12 for the second half of 2014.
For the six months ending December 31, 2014, the Company currently projects:
Henry Yu, Chairman and Chief Executive Officer of General Steel commented, "We are excited that the changing market fundamentals for the steel industry in China and our improved production efficiency gained over the past two years are clearly benefiting General Steel, providing us with greater confidence for a profitable second half of 2014. We are confident about our ability to command firm pricing on our steel products, as smaller competitors in our region have had to drastically reduce or shut down production due to their inability to obtain credit facilities. At the same time, we anticipate that our strong procurement capability and improved operational-efficiency will significantly lower our raw material and production costs. It is our expectation that this combination of firm pricing and lower costs drives higher gross profits."
"Benefitting from a higher gross margin and our diligent control of operating expenses, we are well on our way to earning positive net income for the month of June, and we see a clear path to earning positive net profits for the remainder of 2014. We feel very comfortable about our regional market leadership and believe our focused efforts to lower production costs are now bearing fruit. As such, we fully expect this recovering trend and positive momentum will continue well into 2015 and beyond," Mr. Yu concluded.
About General Steel
General Steel, headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region, and Tianjin municipality with seven million metric tons of crude steel production capacity under management. For more information, please visit www.gshi-steel.com.
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Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and uncertainties related to general economic conditions in China, including regulatory factors that may affect such economic conditions; (b) whether the Company is able to manage its planned growth efficiently and operate profitable operations, including whether its management will be able to identify, hire, train, retain, motivate and manage required personnel or that management will be able to successfully manage and exploit existing and potential market opportunities; (c) whether the Company is able to generate sufficient revenues or obtain financing to sustain and grow its operations; (d) whether the Company is able to successfully fulfill our primary requirements for cash; and (e) other risks, including those disclosed in the Company's most recent Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
Contact Us
General Steel Holdings, Inc.
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
