NEW YORK (AP) ¿ SmartHeat Inc., which makes energy-savings products in China, said Monday its third-quarter profit nearly more than doubled as the growing Chinese construction industry boosted demand for its products.
The company also affirmed its full-year profit guidance and said it continues to expect earnings growth "well into 2010." Shares surged 13 percent in morning trading.
"We are optimistic that SmartHeat is on track to achieve solid fourth quarter earnings growth and another year of rapid growth in 2010," Chairman and CEO James Jun Wang said in a statement.
The company said it earned $8.9 million, or 36 cents per share, in three months ended Sept. 30. It earned $4.3 million, or 18 cents per share, in the same period last year.Sales climbed 83 percent to $37.8 million. The company said sales across all of its product lines grew during the quarter, with 43 percent of sales coming from its heat supply line thanks to a boost from growth in the Chinese domestic construction industry. Analysts surveyed by Thomson Reuters expected a profit of 38 cents per share on $35.1 million in sales. The company also said it continues to expect a 2009 profit of $15.5 million, which amounts to about 62 cents per share. It expects $80 million in sales. Analysts expect 59 cents on $78.6 million in sales for the year. U.S.-traded shares of SmartHeat rose $1.24, or 13.5 percent, to $10.45 in morning trading.