NEW YORK: China Valves Technology Inc swung to a profit in its fourth quarter as sales grew and the company produced more in its expanded Kaifeng facility.
The company, based in Kaifeng, China, said it earned $16.4 million, or 52 cents a share, in the three-month period ended Dec 31. That's up from a loss a $12.3 million, or 43 cents a share, in the same period a year earlier.
Adjusted to exclude non-cash items related to the change in fair value of derivatives and other items, adjusted income was $6.3 million, or 20 cents per share, up from $2.6 million, or 9 cents per share.
Analysts expected earnings per share of 16 cents on revenue of nearly $23 million, according to Thomson Reuters.
Revenue rose 25 percent to $25.4 million from $20.4 million in the previous year.
The company said during the quarter it saw strong sales of high pressure gate valves and two-way metal sealing butterfly valves, to both the power and water industries. It also said it had increased production because of its expansion of its Kaifeng plant.
For the full year the company earned $23.4 million, or 75 cents, compared to a loss of $4.2 million or 18 cents a share, in the prior year.
Revenue rose 43 percent to $95.4 million from $66.6 million.
The company reaffirmed its previous guidance for net income of $40 million in fiscal 2010. Analysts predict net income of $39.4 million in fiscal 2010.
Shares of China Valves fell 29 cents, or 2.15 percent, to $13.22 in midday trading Monday.
