China Gerui Advanced Materials (CHOP -6.1%) lowers its FY2012 guidance, saying the move reflects the industry-wide reduction in steel prices which has led to a decrease in its average selling price "primarily due to slowing macroeconomic conditions in China.”
China Gerui (CHOP) says it has begun to export steel products to customers in Turkey and India at terms of sale generally similar to those of its domestic Chinese customers. Products exported include both wide- and narrow-strip high precision chromium-plated cold-rolled strip steel, to be used as insulation steel tape for wire and cable manufacturing.
China Gerui Advanced Materials (CHOP +18.2%) shares are strong after the cold-rolled steel production company reaffirms its 2012 estimates, expecting revenue of $395M-$410M vs. $404M analyst consensus and EPS of $1.32-$1.37 vs. $1.27 consensus. Q1 EPS of $0.24 beat consensus, while revenue of $73M missed.