Jinpan 2Q Profit Up 44 Percent; Shares Fall
The Associated Press
Jinpan International Ltd., which makes cast resin transformers for power distribution, said on Friday that its second-quarter profit jumped 44 percent as raw material prices fell and it benefited from an influx of high-end orders. But its shares fell sharply as it predicted that earnings growth would slow.
The company earned $8.7 million, or $1.07 per share, during the quarter that ended June 30, up from $6 million, or 74 cents per share,last year. Revenue was nearly flat at $40.9 million, compared with $40.6 million a year ago.
Selling, general and administrative expenses rose 28.6 percent to $9 million because of higher research and development spending and extra overhead at the company's facilities in Shanghai and Wuhan, China, which were not open during the second quarter of 2008.The company, based in Hainan, China, predicted full-year sales of $154 million to $159 million, versus 2008 sales of $154 million. It said it expects to earn $22.5 million to $23.3 million for the full year, or $2.75 to $2.85 per share. Jinpan shares fell $4.58, or 12 percent, to $32.61 in midday trading.
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