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LianDi Clean Technology Inc. Provides Business Update

2011-01-26 10:17 934

Fiscal 2011 Guidance Increased due to growth from Jucheng acquisition; Management now expects $130 million in revenues and $25 million of net income

BEIJING, Jan. 26, 2011 /PRNewswire-Asia-FirstCall/ -- LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the "Company"), a provider of clean technology, downstream flow equipment, engineering services and software to China's leading petroleum and petrochemical companies, today provided a business update.

The following chart reflects LianDi's backlog through the first three quarters of fiscal year ending March 31, 2011.

 
Backlog 9 months ended December 31, 2010 9 months ended December 31, 2009 % Change Y-O-Y
Equipment $36 million $26 million 38.5%
Software $1 million $0 million --
Services $3 million $0 million --
Total $40 million $26 million +53.8%
 

Total orders during the first nine months of fiscal year ending March 31, 2011 were $85 million, an increase of 86.4% compared to the same period last year. Equipment orders grew by 86.2% to $72.8 million.

"We continue to benefit from the strong growth in spending by the large domestic oil and gas and petrochemical companies," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "The growth in orders and contract renewals reflect the successes we have achieved to date. As our customers' needs expand and become more complex, they have consolidated more of their spending among a smaller number of trusted suppliers, which has benefited our company significantly."

Mr. Zuo continued, "Our collaboration with leading global suppliers and broad portfolio of cutting-edge products enhances our ability to drive business value and high performance for our clients. These strategic partnerships with some of the largest organizations in the oil and gas industry around the world allow us to leverage proven technology and industry solutions to optimize our services and offer our clients complete solutions to meet their business challenges. By complementing this with proprietary software and additional products and services, we seek to drive incremental revenue and earnings for 2011."

LianDi recently signed master distribution agreements with new and existing customers which expands the Company's ability to bid for a broader range of projects while meeting more of its customers needs.

 
Name Origin Customer Since Products End Market
Bornemann Germany 2008 Screw Pumps Oil & Gas
ABB Switzerland 2010 Measurement Products Oil & Gas
Metso Finland 2008 Control Valves Petrochemicals
Poyam Spain 2007 Valves Oil & Gas
Rotork U.K. 2007 Electric Actuators Oil & Gas
 

Based on preliminary results through December 31, 2010, the Company is increasing its fiscal 2011 guidance.  Revenues are now expected to be $130 million, an 11% increase from previous estimates of $117 million. Net income is expected to be $25 million, a 1.6% increase from previous estimates of $24.6 million.

About LianDi Clean Technology Inc.

LianDi was established in July 2004 to serve the largest Chinese petroleum and petrochemical companies. Through its four operating subsidiaries, Hua Shen Trading (International) Ltd., Petrochemical Engineering Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical Engineering Ltd., the Company distributes a wide range of customized valves and equipment and provides associated value-added technical and integration service. The Company also develops and markets proprietary optimization software for the polymerization process. In addition, LianDi is focused on the large, rapidly growing, clean technology market for oil refineries, projected to reach over $1 billion in the next 10 years. This market is expected to benefit from favorable Chinese government policies, including tax benefits and other incentives.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain "forward-looking statements" relating to the business of LianDi and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov )

For more information, please contact:

Investor Relations:
 
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Source: LianDi Clean Technology Inc.
Related Stocks:
OTC:LNDT
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