Ossen Innovation shares surge on preliminary 2010 results, 2011 guidance
Ossen Innovation (NASDAQ:OSN), a China-based manufacturer of rare earth and zinc coated pre-stressed steel materials, saw its shares soar on Wednesday after announcing net profit growth of 86% in 2010.
For the full year, Ossen, whose products are used mainly for the construction of bridges and highways, reported a preliminary net profit of $14.9 million, or earnings per share of $0.75. Revenue rose 16% year-over-year to $117.6 million.
The company went public in 2009, and said that earnings per share are therefore not applicable for that year.
"Ossen's current backlog has reached full capacity for 2011. Given the size and duration of most contracts, new orders and backlog will be key metrics to measure business execution and will be provided on a quarterly basis," the company said in a statement.
Additional projects secured throughout the balance of the year will contribute to backlog for 2012, when 30,000 tons of coated production capacity is expected to come online.
Looking ahead, Ossen forecast earnings per share in the range of $0.90 to $0.94 for 2011, on revenue between $138.5 and $144.6 million.
"We continue to secure major bridge projects in China as a result of our established reputation and the quality of our pre-stressed steel materials," said chairman Dr. Liang Tang.
"Our 2011 financial forecast reflects our confidence in executing the growth strategy which is supported by growing demand for new bridges in China."
The company anticipates releasing its final fourth quarter and fiscal year results by June 30.
Its shares rose nearly 20% on Wednesday, to trade at $2.65 as of 10:52am EST.
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