Lihua International, a Chinese developer, designer, and manufacturer of low-cost, high-quality alternatives to pure copper products, today announced its financial results for the fourth quarter and full year ended December 31, 2011.
Lihua reported fourth-quarter 2011 sales at $177.6 million, up 31 percent compared to sales of $135.5 million reported in the fourth quarter of 2010.
Gross profit for the fourth quarter of 2011 was $19.7 million, down 5 percent from gross profit of $20.7 million reported for the fourth quarter of 2010. As a percentage of total sales, gross margin declined to 11.1 percent in the fourth quarter of 2011, from 15.2 percent for the same period last year.
The company reported net income for the fourth quarter of 2011 at $12.7 million, or $0.42 per share based on 30.0 million weighted average diluted shares outstanding, compared with net income of $9.9 million, or $0.33 per share based on 30.0 million weighted average diluted shares outstanding, reported for the comparable quarter of 2010.
As of December 31, 2011, Lihua reported cash and cash equivalents of $105.6 million compared with $90.6 million as of December 31, 2010. As of December 31, 2011, Lihua had working capital of $157.9 million and no debt.
For full-year 2011 the company reported a 72 percent year-over-year increase in revenues to $637.1 million. Gross profit increased 22 percent year-over-year to $75.7 million. Net income increased 38 percent to $53.1 million, or $1.77 per diluted share, compared with $38.5 million, or $1.34 per diluted share, for full-year 2010.
"2011 was a year of progress and positioning for Lihua, as we achieved strong double-digit growth and record results across each of our key operating metrics. We are particularly proud of our 72 percent revenue growth for the year, which provides clear evidence of the continued strong demand for our industry-leading products," Jianhua Zhu, Lihua's founder, chairman and CEO stated in the press release. "We took an important step forward in the fourth quarter, increasing copper rod and anode production capacity to meet increasing customer demand. As a result, we expect to see a higher concentration of refined copper products in our revenue mix going forward. We continue to see positive cash flow from operations, and increased cash position by $15 million over prior year."
The company said it expects full-year 2012 gross profit to be between $93 million and $96 million, and non-GAAP net income between $61 million and $64 million, representing year-over-year growth between 23 percent - 27 percent and 22 percent - 28 percent, respectively. Lihua's outlook for 2012 stems largely from its expectations of continued strong demand in China for recycled copper and copper alternative products in the overall copper consumption market, including the household appliance, consumer white goods and infrastructure markets, as well as the increase production capacity.
For more information visit: www.lihuaintl.com
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