China Armco Sold 25,000 Metric Tons Of Recycled Steel Products To 3 Customers in April and May

China Armco Metals CNAM today announced the preliminary unaudited operating results for the first two months of the second quarter of 2011. In April and May of this year, China Armco sold 25,000 metric tons of recycled steel products to 3 customers. The Company has recognized approximately $14 million of net sales in its recycled steel business through the first two months of the second quarter. Approximately 80% of the tonnage sold in April and May were completed using pre-selling contracts. In addition, the Company recorded $7.1 million of revenue in its metal ore trading business. Client activity remained solid, as reflected in the 41,000 MT of metal ores sold during the first two months of the second quarter. "Our recycling business picked up from a seasonally slow first quarter," said Mr. Kexuan Yao, CEO and Chairman of China Armco. "We are seeing continued interest from customers to increase the amount of recycled metals purchased. So far this year, we have signed 2 new recycling customers who agreed to our pre-selling strategy. As we increase production and make further improvements in our operational efficiencies, we expect measured improvements in our profitability."