Home System Group, an international manufacturer of a variety of household appliances, today posted its financial results and highlights for the year ended December 31, 2009. The company’s Weihe subsidiary, acquired in October 2008, contributed significantly to revenue and operating results.
Home System Group posted 2009 revenue at $61.8 million, up from $51.9 million in 2008, reflecting $25.3 million of additional revenue from the company’s acquisition of Weihe. Revenue was partially offset by the fourth-quarter 2008 sale of approximately $10 million of raw materials.
Gross margin rose to 25.8% in 2009 from 16.2% in 2008, stemming from Weihe’s higher margins, lower raw material costs in part made possible by the addition of Weihe’s volumes, as well as the company’s improvements in operational efficiencies.
Net income for 2009 was $9.3 million, resulting in earnings per diluted share of $0.15, representing a 129 percent increase over the 2008 net income level of $4.1 million, with related earnings per diluted share of $0.07.
Yu, Home System Group CEO, said the company’s full-year financials reflect its resilience to economic hardships.
“Home System’s 2009 results reflect the successful integration of our Weihe subsidiary, acquired in October of 2008. We have benefited from increased sales of ceiling fans and decorative lamps manufactured by Weihe and expect that this growth will continue in 2010. Additionally Home System met the challenges of the severe economic decline in North America, where most of our products are sold, by adjusted our product mix and as a result we believe that our share of market increased in the low and middle-end gas grill market. We were also able to realign our production processes to enhance our efficiencies. I am particularly proud of how well the Home System team responded to these challenges. These accomplishments, assisted by lower raw material costs, enabled the Company to more than double its net income in spite of the economic issues, and position us very well for 2010,” Yu stated in the press release.
Yu also stated his expectations for the upcoming year.
“As we enter 2010, the Company expects some continued weakness in the overall grill market, but we feel that the sales of our small appliances will continue to grow. Additionally we are continuing to review new product opportunities while maintaining our strengthened margins and our commitment to quality and customer satisfaction. In summary we look forward to another year of strong sales and earnings performance for Home System Group in 2010,” Yu concluded.
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