Asia Carbon Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2013
August 15, 2013 at 01:35 am IST
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Asia Carbon Industries, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2013. For the quarter, the company's net sales were $5,487,310 against $13,194,534 a year ago. Net income was $622,522 against $1,871,477 a year ago. Basic and diluted earnings per share were $0.01 against $0.04 a year ago. Income from operations was $918,134 compared to $2,595,974 a year ago. Income before provision for tax was $882,936 compared to $2,553,771 a year ago. The decrease in sales was primarily due to the suspension of production for the conversion to SCB, and a decrease in unit sales prices reflective of lower coal tar oil prices, the primary raw material for carbon black production. The decrease in net income reflects the decline in gross profit and higher operating expenses, which were partly offset by lower income taxes.
For the six months, net income was $1,012,475 or $0.02 per basic and diluted share compared to net income of $3,678,558 or $0.07 per basic and diluted share a year ago. Net sales were $11,451,255 compared to $25,776,226 a year ago. Income from operations was $1,606,897 compared to $5,119,847 a year ago. Income before provision for tax was $1,537,448 compared to $5,043,070 a year ago. Net cash provided by operating activities was $3,088,487 compared to $2,986,174 a year ago. Acquisitions of property, plant and equipment was $3,052,822 compared to $933,441 a year ago.
Asia Carbon Industries, Inc. (Asia Carbon) is a holding Company. The Company operates through its wholly-owned subsidiary Liteweisi and its variable interest entity Hongxing, manufactures in the PRC a series of high quality carbon black products under the brand name Great Double Star. The Company manufactures two hard and one soft carbon black products, called N220, N330 and N660, respectively. N220 hard carbon black, which has good strength and elongation properties, is mainly used in the manufacturing of automobile tires. The N330 hard carbon black has a lower production cost and is mainly used in manufacturing sides of automobile tires. The Companyâs soft product N660, is a soft carbon black which has the flexibility necessary for the production of automobile tire inner tubes and hoses.