China Clean Energy Inc. produces biodiesel fuel and specialty chemical products from renewable resources. The company today posted its financial results for the third quarter ended September 30, 2010, reporting figures that surpassed expectations.
The company posted net revenue for the third quarter at $16.0 million, up 300 percent from the third quarter of 2009. The increase represents higher sales volume and higher average selling prices for its specialty chemicals and biodiesel product segments.
Gross profit in the third quarter was $3.7 million, up 382 percent from the comparable quarter of 2009. The increase in gross profit was mostly driven by the increase in revenue and the improved gross margin, which was 23.2 percent in the third quarter 2010 compared to 19.3 percent in the same period of 2009 and 19.4 percent in the second quarter of 2010.
China Clean Energy reported operating income in the third quarter at $3.2 million, up 1,046 percent from the third quarter of 2009. Operating margin for the quarter was 20.3 percent, compared to 7.1 percent in the comparable period of 2009.
Net income for the third quarter 2010 was $1.8 million, or $0.06 per fully-diluted share, compared to a net loss of $0.7 million in the third quarter 2009 and net income of $1.9 million, or $0.06 per fully-diluted share, in the second quarter of 2010.
As of September 30, 2010, China Clean Energy said it had $9.1 million in total cash, approximately $13.3 million in working capital, and $5.1 million in total debt.
“In the third quarter we again delivered results that exceeded our expectations as we continued to successfully ramp production at our Jiangyin plant,” Tai-ming Ou, China Clean Energy’s chairman and CEO stated in the press release. “Our record results for the quarter were driven by higher volume and improved margins in our specialty chemicals business as we increased sales of high margin products such as high-purity dimer acid and multi-purpose hot melt adhesive, and raised prices of some other of our specialty chemical products to reflect our improved quality, as we benefited from strong demand from our existing customer base. Looking ahead, demand for our products remains strong and we expect to sustain our growth momentum into the fourth quarter.”
For additional information visit www.chinacleanenergyinc.com
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