WUHAN, Hubei, China, Nov. 15 /Xinhua-PRNewswire-FirstCall/ -- Wuhan General Group (China), Inc. (OTC Bulletin Board: WUHN), a leading manufacturer of industrial blowers and steam/water turbines in China, announced its financial results for the third quarter ended September 30, 2007. The Company will host a conference call to discuss these results on Tuesday, November 20, 2007 at 8:30 am EST.
Q3 Highlights
-- Sales increased 492% from the same quarter last year to a record
$30.5 million
-- Net income increased 394% from the same quarter last year to a record
$7.7 million
-- Basic EPS of $0.38 vs. $.08 from the same quarter last year, up 375%
-- A contract with Jiangsu Huangli Paper Industry Co., Ltd. for $26.0
million
Key Financial Indicators:
(All numbers in USD millions, except per-share amounts)
Percentage
Q3 2007 Q3 2006 Change
Sales 30.5 5.2 492%
Gross Profit 10.5 2.3 351%
Operating Income 8.0 1.7 377%
Net Income 7.7 1.6 394%
EPS (Basic) 0.38 0.08 375%
Sales increased for the third consecutive quarter to a record $30.5 million, up 492% from $5.2 million for the third quarter 2006. The increase was mainly attributable to increased demand for anti-pollution equipment in China and revenue from the construction of a thermal electric power plant for Jiangsu Huangli Paper Industry Co., Ltd.
Operating income for the three months ended September 30, 2007, increased to $8.0 million, as compared to $1.7 million for the three months ended September 30, 2006. As a percentage of sales, operating income was 26.1% for the three months ended September 30, 2007, compared to 32.4% for the three months ended September 30, 2006.
"We are pleased with our third quarter financial results and believe that they are consistent with our expectation of continued record sales and earnings growth in 2007," said Xu Jie, President and CEO of the Company. "We are also very excited about the contract we obtained to build a power plant for Jiangsu Huangli Paper company."
Nine Month Financial Results
Sales for the first nine months of 2007 were $60.3 million as compared to $11.6 million for the same period in 2006, which represents an increase of approximately $48.7 million or 420%. The increase was mainly attributable to increased demand for anti-pollution equipment in China and revenue from the construction of a thermal electric power plant for Jiangsu Huangli Paper Industry Co., Ltd.
Operating income was approximately $14.4 million for the nine months ended September 30, 2007 as compared to approximately $3.3 million for the nine months ended September 30, 2006, which represents an increase of $11.1 million or 341%. As a percentage of sales, operating income was 23.8% for the nine months ended September 30, 2007, compared to 28.1% for the nine months ended September 30, 2006. This decrease was due primarily to the increased cost of materials.
Net income was approximately $13.7 million for the nine months ended September 30, 2007 as compared to approximately $2.9 million for the nine months ended September 30, 2006, which represents an increase of $10.8 million or 374%.
Teleconference Information
Further details regarding the Company's third quarter 2007 financial performance will be discussed during management's conference call on Tuesday, November 20, 2007, at 8:30 AM (EST). The media and public are invited. The dial-in number is 1-888-285-4585 for participants in the U.S. and 1-304-345-7354 for participants outside the U.S. The Participant Code for the call is 928728.
ABOUT WUHAN GENERAL GROUP (CHINA), INC.
Wuhan General Group (China), Inc. is a holding company whose primary business operations are conducted through its operating subsidiaries Wuhan Blower Co., Ltd. ("Wuhan Blower") and Wuhan Generating Equipment Co., Ltd. ("Wuhan Generating Equipment"). Wuhan Blower is a China-based manufacturer of environmentally-friendly industrial blowers that are components of steam driven electrical and co-generation power plants. Wuhan Generating Equipment is a China-based manufacturer of environmentally-friendly industrial steam and water turbines, also principally for use in electrical power generation plants.
FORWARD-LOOKING STATEMENTS
The statement regarding our expectations with regard to future sales and earnings growth is a "forward-looking statement," as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to vulnerability of our business to general economic downturn, operating in the People's Republic of China (PRC) generally and the potential for changes in the laws of the PRC that affect our operations, our failure to meet or timely meet contractual performance standards and schedules and other factors that may cause actual results to be materially different from those described in such forward-looking statements. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
John H. Starr
Executive-Vice President
1st BridgeHouse Securities LLC
Tel: +1-203-209-6351
Email: jstarr@1stbridgehouse.com
