Welcome!

Mobile IoT Authors: Yeshim Deniz, Elizabeth White, Liz McMillan, Ed Featherston, Carmen Gonzalez

News Feed Item

Fushi Copperweld Announces 2012 Third Quarter Results

BEIJING, Nov. 9, 2012 /PRNewswire-FirstCall/ -- Fushi Copperweld, Inc. (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today announced financial results for the third quarter ended September 30, 2012.

Third Quarter 2012 Results

  • Revenues were $72.6 million compared to $74.3 million in the year ago period;
  • Gross profit was $18.9 million, or 26.1% of revenues, compared to $19.9 million, or 26.8% of revenues, in the year ago period;
  • Income from operations was $11.3 million, or 15.5% of revenues, compared to $13.7 million, or 18.5% of revenues, in the year ago period;
  • Net income was $7.7 million, or $0.20 per diluted share, compared to net income of $8.9 million, or $0.23 per diluted share, in the year ago period;
  • Cash position of $217.7 million at September 30, 2012.

Joe Longever, co-Chief Executive Officer of Fushi Copperweld, commented, "Our performance for the 2012 third quarter was in-line with our expectations, as we continued to execute on our strategic objectives in a challenging macroeconomic environment. Following on previous trends, sales to the telecom market in China remained soft, but we have seen signs that volumes in this market may be nearing a sustainable level, as sales improved over second quarter 2012 levels. Sales in our utility and transportation product lines in North America benefited from stronger domestic and international demand, which, combined with stronger pricing, resulted in a significant improvement in profitability at our Fayetteville facility. While we saw higher sales volumes at Dalian, results there were also affected by lower raw material pricing, which resulted in lower average sales prices and profitability. In Europe, the ramp-up of operations at our new facility in Liege continued, and while the ramp of this business has been slower than expected given the economic issues facing that market, we continue to make progress and further expand our presence through our sales and innovation center in Milan. Looking ahead, as we approach the end of the calendar year we remain excited about the many growth prospects for our business, and believe we are well positioned for the eventual economic recovery."

Revenues in the third quarter of 2012 were $72.6 million, a decrease of 2.3% compared to $74.3 million in the prior year quarter. The decrease was primarily due to lower unit selling prices as a result of decrease of raw material price in the third quarter of 2012 compared to that of 2011. The PRC segment experienced a decrease of 8.3% in revenues in the third quarter of 2012, which was primarily due to lower unit selling prices as a result of a decrease in the unit price of raw materials, particularly copper. The US segment experienced an increase of 26.2% in revenues in the third quarter of 2012 compared to the same period of 2011. The increase was primarily due to an 18.5% increase in quantities sold, which was partially contributed by operations in Liege, Belgium.

Gross profit decreased 5.0% to $18.9 million from $19.9 million in the third quarter of 2011. As a percentage of revenues, gross margin decreased to 26.1% in the third quarter of 2012 from 26.8% in the same period in 2011. The decrease of gross margin was mainly due to lower average gross margin at our Liege tubing facility, which started sales in the first quarter of 2012.

Operating expenses in the third quarter of 2012 increased to $7.7 million, compared to $6.2 million in the prior year's quarter, primarily as a result of approximately $0.6 million in advisory fees related to the going private offer and definitive merger agreement, compared to $0.3 million in the prior year period. As previously announced on June 28, 2012, the Company has entered into an Agreement and Plan of Merger with entities affiliated with its Chairman and Co-Chief Executive Officer, Mr. Li Fu, and Abax Global Capital (Hong Kong) Limited at a price of $9.50 per share in cash.  The Company continues to expect the transaction to close in the fourth quarter of 2012.

Operating expenses in the third quarter of 2012 also included the Company's continued investment in its global business development efforts of $0.4 million and incremental costs of approximately $0.5 million related to the start-up of operations at its new facility in Liege, Belgium. As a percentage of revenue, operating expenses increased to 10.6% from 8.3% in the third quarter of 2011.

The Company's effective income tax rate in the third quarter of 2012 was 33.0% compared to 31.6% in the year ago period. The Company expects its effective tax rate for the 2012 full year period to be 35% due to more losses generated from loss-making entities in US as a result of higher go-private expenses incurred in 2012.

Net income in the third quarter was $7.7 million, or $0.20 per diluted share, compared to net income of $8.9 million, or $0.23 per diluted share, for the 2011 third quarter.

Fully diluted shares in the third quarter of 2012 were 38.4 million, an increase of 0.3% compared to 38.3 million in the year ago period.

As of September 30, 2012, the Company's cash position was $217.7 million, an increase of 8.6% from $200.5 million as of December 31, 2011. Accounts receivable at September 30, 2012 was $70.0 million, compared to $64.0 million at December 31, 2011. Long-term debt totaled $7.8 million as of September 30, 2012, compared to $8.3 million at December 31, 2011.

Outlook
Based on its third quarter performance and current business trends, Fushi Copperweld currently expects 2012 fully diluted earnings per share to be between $0.66 and $0.76, reflecting an estimated weighted average diluted share count of 38.4 million shares and an effective tax rate of 35%. This revised guidance is primarily the result of higher than previously expected costs related to closing the Plan of Merger, specifically the acceleration of related activities following the recommendation from the Company's Board of Directors to accept the offer and the upcoming special shareholder meeting regarding the offer, taking place on December 11, 2012.

About Fushi Copperweld
Fushi Copperweld Inc., principally through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd. and Copperweld Bimetallics LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications. With extensive design and production capabilities, and a long-standing dedication to customer service, Fushi Copperweld is the preferred choice for bimetallic products worldwide.

Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

For more information, please contact:

Investors
Jolin Qiao, Investor Relations Officer
Fushi Copperweld Inc.
Phone +1.615.377.4183
E-mail: [email protected]
Web:  www.fushicopperweld.com

 

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS











September 30,



December 31,




2012



2011




USD



USD


ASSETS









Current assets:









Cash



217,651,755




200,451,902


Accounts receivable, net of allowance for doubtful accounts



69,960,402




63,978,861


Inventories



20,326,083




10,695,123


Advances to suppliers



6,434,273




6,793,904


Prepaid expenses and other current assets



2,120,305




1,332,204


Total current assets



316,492,818




283,251,994











Property, plant and equipment, net



107,924,367




117,405,523


Intangible assets, net



301,912




431,441


Land use rights



13,037,820




13,321,796


Deposits for land use rights



10,105,229




10,090,621


Goodwill



1,814,691




1,812,068


Other non-current assets



448,615




491,380


Total assets



450,125,452




426,804,823


LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities:









Short-term bank loan



2,828,320




-


Current portion of long-term loan



650,000




650,000


Accounts payable



5,738,739




3,802,155


Amounts due to a related party



-




2,000,000


Accrued expenses and other current liabilities



15,344,231




15,880,176


Total current liabilities



24,561,290




22,332,331


Long-term loans



7,121,200




7,632,100


Deferred income tax liabilities



633,954




672,943


Total liabilities



32,316,444




30,637,374











Shareholders' equity:









Common stock, $0.006 par value, 100,000,000 shares authorized; 38,402,560 and 38,240,438 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively



230,417




229,444


Additional paid-in capital



170,526,773




169,335,522


Retained earnings



192,455,545




172,507,890


Accumulated other comprehensive income



54,596,273




54,094,593


Total shareholders' equity



417,809,008




396,167,449


Commitments and contingencies









Total liabilities and shareholders' equity



450,125,452




426,804,823


 

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME











Three-month
Period Ended September 30,



Nine-month
Period Ended September 30,




2012



2011



2012



2011




USD



USD



USD



USD















Revenues



72,607,142




74,279,340




212,056,802




219,158,766


Cost of revenues



53,660,052




54,353,890




156,912,140




161,047,950


Gross profit



18,947,090




19,925,450




55,144,662




58,110,816



















Operating expense

















Selling expenses



1,836,636




1,127,259




5,267,629




3,519,065


General and administrative expenses



5,855,039




5,061,337




19,454,307




15,035,656


Total operating expenses



7,691,675




6,188,596




24,721,936




18,554,721



















Income from operations



11,255,415




13,736,854




30,422,726




39,556,095



















Other income (expense):

















Interest income



237,563




222,852




710,972




663,776


Interest expense



(70,687)




(116,378)




(309,183)




(340,282)


Foreign currency exchange gain (losses), net



62,449




(757,407)




82,116




(1,677,122)


Total other income (expense)



229,325




(650,933)




483,905




(1,353,628)



















Income before income taxes



11,484,740




13,085,921




30,906,631




38,202,467


Income tax expense



3,784,597




4,137,255




10,958,976




11,793,472



















Net income



7,700,143




8,948,666




19,947,655




26,408,995



















Other comprehensive income:

















Foreign currency translation adjustment, net of nil income taxes



4,237,345




5,322,885




501,680




12,854,266


Comprehensive income



11,937,488




14,271,551




20,449,335




39,263,261



















Earnings per share:

















Basic and diluted



0.20




0.23




0.52




0.69


 

FUSHI COPPERWELD, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS








Nine-Month Period Ended September 30,




2012



2011




USD



USD


Cash flows from operating activities:









Net cash provided by operating activities



16,289,145




40,676,212











Cash flows from investing activities:









Purchases of property, plant and equipment



(423,623)




(1,160,718)


Net cash used in investing activities



(423,623)




(1,160,718)











Cash flows from financing activities:









Proceeds from bank loans



15,768,600




-


Payment for acquisition of Jinchuan



-




(4,819,107)


Repayment of interest-free advance provided by Mr. Li Fu



(2,000,000)




-


Repayment of bank loans



(13,435,700)




(487,500)


Proceeds from issuance of common stock and warrants



573,210




628,495


Net cash provided by (used in) financing activities



906,110




(4,678,112)











Effect of foreign currency exchange rate changes on cash



428,221




5,786,556


Net increase in cash



17,199,853




40,623,938


Cash at beginning of period



200,451,902




123,000,338


Cash at end of period



217,651,755




163,624,276











Supplemental disclosure of cash flow information:









Interest paid



309,183




340,282


Income taxes paid



15,257,995




7,665,233


 

SOURCE Fushi Copperweld, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...