Seattle-based L&L Energy Inc., a company focusing on coal mining and distribution businesses in China, today announced its third-quarter results for fiscal year 2011, reporting record revenue net income.
The company posted revenue for the quarter at $65.9 million, a 74 percent increase over the $38.0 million reported for the same quarter of fiscal 2010. The company attributes the sales growth to sustained demand for coal and subsequent price increases.
Gross profit for the third quarter grew 33 percent to $21.4 million, compared to $16 million reported for the comparable quarter of fiscal 2010. Gross margin declined slightly sequentially to 32.5 percent as compared with 33.5 percent in the prior quarter, driven by increased levels of coal washing at the company’s expanded Hong Xing washing facility.
Operating expense for the quarter remained steady at nearly $4.9 million. Operating margin increased to 77 percent from 75 percent. Operating income grew 26 percent to $16.5 million, or $0.41 earnings per share, as compared to $13 million, or $0.34 earnings per share, reported in the third quarter of 2010.
Dickson Lee, chairman and CEO of L&L, said the company expects to generate positive results through the fourth quarter.
“Demand for coal in our operating region of Southwest China remains robust,” Lee stated in the press release. “We are encouraged by our strong results, our partnership with Bowie Resources in Colorado, and ongoing discussions with the Zhanjiang Port in China. We anticipate sustained demand for our fiscal fourth quarter, driven by ongoing overall economic growth.”
For more information visit www.lnlinternational.com