WUHAN, Hubei, China, June 30 /Xinhua-PRNewswire-FirstCall/ -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today announced preliminary results for the second quarter of 2008, with revenue expected to be over US$52 million compared with US$36 million in the second quarter of 2007, reflecting over 43% year-over-year growth. In the 2008 second quarter, diluted earnings per share (EPS) are expected to be between $0.18 and $0.22, compared with second quarter 2007 diluted EPS of $0.10.
The 2008 second quarter results were highlighted by solid performances across China Automotive Systems' business segments and strong cash flow from operations. China Automotive Systems has also renewed their contracts with all of its key customers.
''We are very confident about the favorable market outlook for our long-term growth. Despite the slowdown of the US and European auto market, the Chinese domestic auto market maintains a healthy growth momentum. Also, with the rising fuel price in China, most of our large OEM customers, who are economy car manufacturers, will benefit from increasing market demand for small-size vehicles. We strive to continue to win new contracts and expand our production capacity to increase our earnings, and further enhance our long-term shareholder value," Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, commented.
About CAAS
Based in Hubei Province, People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through seven Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering and 307 models of power steering with an annual production capacity of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc. For more information, please visit: http://www.caasauto.com .
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition and the impact of acquisitions on its financial performance. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in demand for the Company's products; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, delays and cost overruns related to developing and opening new production facilities; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
For further information, please contact:
Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn
Kevin Theiss
Investor Relations
Grayling Global
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com