Click here to close now.

Welcome!

Agile Computing Authors: Jnan Dash, Elizabeth White, Larry Dragich, Pat Romanski, Wayne Lam

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
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare to be blown away with a glimpse of the future.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context wi...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.