TAIYUAN, China, Oct. 25 /Xinhua-PRNewswire/ -- Puda Coal, Inc. (OTC Bulletin Board: PUDC) (“Puda Coal” or the “Company”) today announced that the 2007 guidance contained in its press release dated April 17, 2007 mistakenly overstated the projected revenues and operating income for fiscal year 2007. The expected revenues for fiscal 2007 are approximately $160 million and the expected operating income, approximately $22 million, down from prior guidance of revenues between $210 and $220 million and operating income between $34 and $36 million for the full year 2007.
Also today, the Audit Committee of the Company, which is reviewing the circumstances of the error in the Company’s guidance, has determined to engage special counsel to assist the Committee in that process. Today’s press release has no impact on the Company’s financial statements for the fiscal quarters ended March 31 and June 30, 2007.
About Puda Coal, Inc.
Puda Coal, located in Shanxi Province of China, through its subsidiary Shanxi Coal, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently possesses 3.5 million metric tons of annual coking coal cleaning capacity. Shanxi Province provides 20 - 25% of China’s coal output and supplies nearly 50% of China’s coke.
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future anticipated financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We do not intend to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
For more information, please contact:
Investor Relations Contact:
Crocker Coulson, President
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Company Contact:
Lawrence Wizel
Chairman of Audit Committee
Puda Coal, Inc.
Email: lwizel@verizon.net