Asia Carbon Industries, Inc. Announces Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2012
May 15, 2012 at 12:23 pm EDT
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Asia Carbon Industries, Inc. announced unaudited consolidated earnings and production results for the first quarter ended March 31, 2012. For the quarter, the company reported net sales were $12,581,692 against $13,441,516 a year ago. The decline in sales was mainly attributable to the decrease in the market selling price of carbon black. Income from operations was $2,523,873 against $2,890,628 a year ago. Income before provision for income tax was $2,489,299 against $2,863,450 a year ago. Net income was $1,807,081 against $2,105,473 a year ago. Net income per diluted share was $0.04 against $0.04 a year ago.
The company's total carbon black production capacity was 61,000 tons per annum as of March 31, 2012 and 2011, respectively. The annualized production/total capacity utilization rate was 82% and 80%, respectively, during three months ended March 31, 2012 and 2011. Unit sales of carbon black products increased to 12,573 tons in the quarter ended March 31, 2012, up 3.5% from 12,140 tons for the same period in 2011, while the average sales price of these products decreased 13% to $933 per metric ton in the quarter ended March 31, 2012 from $1,070 per ton in the quarter ended March 31, 2011. This decline of unit sales price was somewhat offset by the increase in unit sales.
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.