Update: American Lorain Earnings

| About: American Lorain (ALN)
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Q2 EPS, $0.06; H1 EPS, $0.11.

My opinion has changed from buy to sell.

There is still a lack of communication.

This year I already wrote two articles about American Lorain (NYSEMKT:ALN). The first one was in January entitled: American Lorain An Undervalued Opportunity and the second one in May called American Lorain More Questions Than Answers.

Unfortunately, I had to find out that the company published its second quarter results on August 14. American Lorain didn't take the time to publish an official press release.

Revenue/EPS Summary 2012-2014
Fiscal Quarter 2014
(Fiscal Year)
(Fiscal Year)
(Fiscal Year)
Revenue $31,689 $34,809 $37,141
EPS 0.05 0.07 0.10
Revenue $32,516 $34,064 $40,816
EPS 0.06 0.07 0.10
Revenue $53,103 $57,972
EPS 0.13 0.15
December (FYE)
Revenue $93,301 $103,743
EPS 0.21 0.24
Revenue $64,205 $215,279 $239,673
EPS 0.11 0.48 0.59

Net revenue for the second quarter was $32.5 million, which represents a slight decrease of approximately $1.55 million, or 4.55%, from the same quarter last year. The overall decrease was attributable to a decrease in sales of the company's product segments.

Net income decreased $0.4 million, or 13.20%, to $2.2 million for the second quarter, from $2.6 million for the same period of 2013. The decrease was attributable to decreased sales revenue, an increase in wage expense for factory workers, an increase in depreciation expenses for capital equipment and an increase in the cost of consumables used in conjunction with capital equipment.

The declining revenues isn't a good sign for the nearby future and as I wrote in my last article the lack of communication is a big red flag. My opinion has changed, and right now I am not a buyer of the stock anymore, despite the company appointing a new CFO.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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