Orient Paper Sees Q3 EPS of $0.30 vs $0.28 Est; Revises 2011 guidance

Orient Paper, Inc.

today announced unaudited preliminary results for the three months ended September 30, 2011. The Company plans to release full financial results and file its Form 10-Q on or before November 9, 2011 and will hold an earnings conference call to discuss its results. For the three months ended September 30, 2011, Orient Paper is expecting to report total unaudited revenue increased 61.2% to approximately $37.1 million from $23.0 million in the third quarter of 2010. The year-over-year substantial increase reflects the fact that the Company's revenue and gross profit in the third quarter of 2010 were negatively impacted by the replacement of new boilers and the resulting disruption on production and sales volume. During the third quarter of 2011, the Company sold 55,642 tons of corrugating medium paper and offset printing paper, up 36.3% compared to the same period last year. In addition, the average selling prices of the Company's corrugating medium paper and offset printing paper products rose 31.1% and 12.6%, respectively, compared to the same period last year. The Company expects to report unaudited gross profit of approximately $8.0 million for the third quarter of fiscal year 2011, compared to $3.8 million in the third quarter last year. The Company is expecting unaudited net income to be approximately $5.4 million, or $0.30 per diluted share, up from $1.8 million, or $0.10 per diluted share, for the same period last year. The Company revised its 2011 guidance with projected revenue for fiscal year 2011 to be between $147 million and $163 million, gross profit of between $32 million and $35 million., However, the Company reaffirmed its guidance for 2011 net income of between $21 million and $23 million, and basic and diluted earnings per share of between $1.16 and $1.28.