Monday, March 26, 2012

China XD Plastics Company Ltd. (CXDC) Posts Q4, FY 2011 Financial Results and Upward Guidance

China XD Plastics Company, one of China’s leading specialty chemical players engaged in the development, manufacture, and sale of modified plastics primarily for automotive applications, today announced its financial results for the fourth quarter and the full year ended December 31, 2011, and offered expectations of revenues for fiscal 2012 to range between $550 million and $580 million.

Revenues for the fourth quarter of fiscal 2011 were $113.9 million, a year-over-year increase of 57.3 percent compared to $72.4 million reported in the fourth quarter of fiscal 2010.

Fourth-quarter gross for 2011 was $29.3 million, up 57.7 percent from $18.6 million in the fourth quarter of fiscal 2010. Gross margin was 25.7 percent, compared to 25.6 percent in the same period of the year prior.

China XD recorded operating income for the fourth quarter of fiscal 2011 at $24.4 million, or 21.4 percent of revenues, an increase of 65.9 percent over operating income of $14.7 million, or 20.3 percent of revenues, reported for the fourth quarter of 2010.

Net income for the fourth quarter of fiscal 2011 was $18.5 million, or basic and diluted earnings per share of $0.29, compared to a net income of $6.4 million, or basic earnings per share of $0.14 and diluted earnings per share of $0.09, for the same period of the prior year.

The company reported revenues for the fiscal year 2011 at $381.6 million, a year-over-year increase of 52.8 percent compared to $249.8 million reported in the fiscal year 2010.

Gross profit for the fiscal year 2011 was $95.8 million, up 55.7 percent from $61.5 million in the fiscal year 2010. Gross margin was 25.1 percent, compared to 24.6 percent in the same period of the prior year.

Operating income for the fiscal year 2011 was $76.8 million, or 20.1 percent of revenues, an increase of 128.0 percent over operating income of $33.7 million, or 13.5 percent of revenues, in the same period of the prior year.

Net income for the fiscal year 2011 was $60.5 million, or $1.17 basic and diluted earnings per share, compared to a net income of $28.8 million, or $1.16 basic and diluted earnings per share, for the same period of the prior year.

As of December 31, 2011, China XD Plastics had $135.5 million in cash and cash equivalents; $186.6 million in working capital; and a current ratio of 4.0. Stockholders’ equity as of December 31, 2011, was $173.9 million, compared to $104.3 million as of December 31, 2010.

Jie Han, chairman and CEO of China XD Plastics, attributed the increases to strong demands of products spanning the company’s portfolio. The company also launched its third production base in December 2011, creating an additional 90,000 metric tons of annual production capacity across 20 new production lines.

“2011 marked another excellent year of performance for China XD Plastics in which we generated strong operational and financial results and further built on our leadership position in the marketplace. We are pleased with the development of our product mix and product certifications, both key areas we believe give us significant competitive advantages as we continue to expand our customer base and increase sales,” Han stated. “Looking ahead, we continue to be enthusiastic about the prospects for our business. Demand for our products remains strong, the implementation of additional capacity and product lines is on schedule, and we are making the necessary investments in R&D to ensure we are well positioned to leverage positive market dynamics both now and in the future. In light of our strong performance in 2011 and positive growth trends for the sector and our business we remain optimistic about business and growth in 2012.”

For more information visit www.chinaxd.net

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