SORL Auto Parts Reports Financial Results For the Second Quarter of 2012
SORL Auto Parts (NASDAQ: SORL) announced today its financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Financial Highlights
Revenues for the second quarter of 2012 were $52.1 million;
Gross margin was 27.2% in the second quarter of 2012, up from 27.1% in the second quarter of 2011;
Net Income attributable to shareholders was $3.0 million, or $0.16 per diluted share, in the second quarter of 2012;
In the first six months, cash flow from operating activities was $10.2 million and free cash flow of $9.8 million was generated.
Mr. Xiaoping Zhang, SORL's Chief Executive Officer and Chairman, stated, "We produced a strong quarter in a very difficult global commercial vehicle market. While our revenue in the domestic OEM, domestic aftermarket and international market all experienced different levels of year-over-year declines, we managed to hold our market shares and protect our gross margin. Despite the negative sentiment in the marketplace, there is also a bright side to the story. The large and increasing base of commercial vehicles in operation in China, stricter safety measures and the expiration of OEM warranties helped SORL's aftermarket sales, as braking systems are one of the most critical controls of a vehicle's safety. In addition, the continuing growth of China's many large urban centers, new school bus regulations and the Chinese government's increased support for public transportation supports the bus aftermarket and OEM markets. Internationally, we also see opportunities as Chinese-made product quality has reached the same level of global counterparts, but with a better pricing advantage, especially in the standard product category."
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