Jinpan International Ltd. announced preliminary financial results for the second quarter of 2010, and reduced guidance on revenues and net income for the 2010 year.
Jinpan International Ltd. said that sales for the second quarter of 2010 were $36.8 million, down from the $40.9 million reported in the same quarter of 2009. Revenue is still heavily weighted towards domestic business within China, where the company had $30.5 million in revenues compared to $6.3 million internationally.
Net income and diluted earnings per share were $2.0 million and $0.12, respectively in the second quarter of 2010. Jinpan International Ltd. said that the quarter was adversely impacted by a $2.5 million tax payment incurred from profits distributed to the parent company from a subsidiary.
Jinpan International Ltd. also revised its guidance down for revenues and net income for the balance of the year. The company now expects revenues to decline by 10-15% and net income to decline by 45-50% compared to 2009.
The management of Jinpan International Ltd. blamed the reduced guidance on the difficulty in securing business outside of China. Zhiyuan Li, the CEO of Jinpan International Ltd., said, “While demand from domestic customers has been strong, orders in our international business have taken longer to materialize than originally anticipated.”
For more information on the company, go to www.jstusa.net