Fushi Copperweld Inc. (FSIN) Posts Final Q4, FY2010 Results

By @ibtimes on

Fushi Copperweld Inc., the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, yesterday announced its final financial results for the fourth quarter and 12 months ended December 31, 2010, in line with previously announced preliminary results.

“Our 2010 fourth quarter and full year results came in as expected and reflect strong performance in a shifting market driven by infrastructure spending priorities and volatile raw material pricing. We remain focused on leveraging the global opportunity we see for our products and will continue to expand our presence in both current and new markets to grow our business,” Joe Longever, co-CEO of Fushi Copperweld stated in the press release.

Revenues for the fourth quarter of 2010 increased 35.2 percent to $69.9 million, up from $51.7 million in the prior year quarter.

Gross profit in the fourth quarter of 2010 increased 28.8 percent to $22.2 million compared to $17.2 million a year ago. Gross margin decreased to 31.8 percent from 33.4 percent in the year ago period; the company attributes the decrease primarily to lower gross margin of Dalian Jinchuan, which was acquired in February 2010.

Operating expenses in the fourth quarter of 2010 increased 29.9 percent to $6.2 million compared to $4.8 million in the prior year’s quarter. On a percentage basis, the company reported that its operating expenses decreased to 8.9 percent of revenues from 9.3 percent in the fourth quarter of 2009. Operating income was $16.0 million, a 28.3 percent increase compared to the prior year period.

On GAAP basis, the company reported a net loss for the 2010 fourth quarter at $2.4 million, or $0.06 per diluted share, compared to GAAP net income of $10.2 million, or $0.34 per diluted share, in the fourth quarter of 2009.

On non-GAAP basis, fourth-quarter 2010 adjusted net income was $13.4 million, or $0.35 per diluted share, compared to adjusted net income of $10.3 million, or $0.34 per diluted share, in the prior year fourth quarter.

During the three months ended December 31, 2010, the company generated $27.4 million net cash from operating activities, compared to $11 million in the comparable period in 2009.

For full-year 2010 the company reported of $265.0 million, a 44.8 percent increase over the $182.9 million reported for 2009.

Gross profit for the 12 months of 2010 increased 44.7 percent to $79.3 million, or 30.0 percent of revenue, from $54.8 million, or 30.0 percent of revenue, reported in fiscal year 2009.

Operating expenses for fiscal year 2010 were $21.2 million, compared to $17.9 million in fiscal year 2009. On a percentage basis, operating expenses decreased to 8.0 percent of revenues from 9.8 percent for fiscal year 2009. Operating income increased 57.3 percent to $58.0 million, or 21.9 percent of revenues, compared to $36.9 million, or 20.2% of revenues, in fiscal year 2009.

On GAAP basis, net income for the 2010 fiscal year was $31.9 million, or $0.85 per diluted share, as compared to net income of $21.9 million, or $0.76 per diluted share, in the 2009 fiscal year.

On non-GAAP basis, adjusted net income was $48.6 million, or $1.30 per diluted share in 2010 fiscal year, compared to adjusted net income of $28.9 million, or $1.01 per diluted share, in the 2009 fiscal year.

As of December 31, 2010, the company’s cash position was $123.0 million, up 103.0 percent from $60.6 million as of December 31, 2009.

For more information visit www.fushicopperweld.com

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