China Wind Systems Inc., a leading supplier of forged rolled rings and other forged components used for wind power and industrial equipment primarily for the textile industry in China, today announced its financial results for the fourth quarter and full year ended December 31, 2010.
Fourth-quarter revenue for 2010 increased 41.5 percent to $22.5 million, compared to $15.9 million in the same period of 2009.
Gross profit for the fourth quarter of 2010 increased 41.0 percent to $6.1 million, compared to $4.3 million for the same period in 2009. Gross margin remained similar at 27.2 percent during the fourth quarter of 2010 compared to 27.3 percent for the same period a year ago.
Operating expenses increased 194.7 percent to $1.7 million, compared to $0.6 million in the comparable period last year, as a result of higher selling, general, and administrative expenses related to increased payroll expenses, stock-based compensation, traveling expenses and shipping expenses. The company also significantly increased its bad debt allowance based on its evaluation of its account receivable balances.
Operating income increased 17.9 percent to $4.4 million, compared to $3.8 million for the same period of 2009. Operating margin was 19.7 percent compared to 23.7 percent in the fourth quarter last year.
Net income increased 16.6 percent to $3.1 million, or $0.17 basic earnings per share, compared to $2.7 million, or $0.17 basic earnings per share in the comparable period last year. Diluted earnings per share were $0.13, compared to $0.11 in the same period of 2009.
“In the fourth quarter of 2010, we continued to expand our market presence in the wind sector. We reported strong year-over-year and quarter-over-quarter revenue growth from our business selling forged products to the wind industry,” Jianhua Wu, chairman and CEO of China Wind Systems stated in the press release. “During the quarter, we delivered precision forged products from our newly built electro-slag remelting facility while maintaining output from our traditional forged rolled ring facility. … In addition, our next generation, energy efficient and environmentally friendly dyeing machines continue to gain increased traction and we are receiving strong customer interest.”
For the year ended December 31, 2010, revenues increased 48.8 percent to $79.5 million from $53.5 million in 2009. Gross profit increased 61.9 percent to $20.9 million, compared to $12.9 million last year. Operating income increased 44.8 percent to $15.5 million from $10.7 million in 2009. Net income was $11.1 million, or $0.62 basic earnings per share, a 45.5 percent increase from $7.6 million, or $0.37 basic earnings per share, reported last year. earnings per share in 2010 and 2009 were $0.44 and $0.24, respectively.
As of December 31, 2010, China Wind Systems held cash and cash equivalents of $0.9 million, accounts receivable of $8.2 million, and total current assets of $15.7 million. The company reported $1.8 million in short-term loans payable, no long-term debt and stockholders’ equity stood at $62.6 million.
For more information visit http://www.chinawindsystems.com
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