WSP Holdings Posts 1st Ever Quarterly Loss In 3Q
HARTFORD, Conn. (AP) ¿ WSP Holdings Inc., a Chinese manufacturer of oil and natural gas exploration and drilling products, posted a third-quarter loss ¿ its first ¿ on lower demand and prices due to the global recession.
Shares plunged in afternoon trading.
The company, based in Wuxi, China, said it lost $11.7 million, or 11 cents per American depository share, down from a profit of $29.8 million, or 29 cents per ADS, in the same quarter last year.
Revenue for the quarter ended Sept. 30 was $90.2 million, down two-thirds from $282.4 million in the year-ago period.WSP Holdings said the results reflect significantly lower demand and reduced prices for its products "in light of the challenging environment in international and domestic markets." Sales to U.S. markets rose slightly following the opening of a new Houston inspection line in September, the company said. But sales to other international markets declined during the quarter. In addition, in response to recent trade disputes, many Chinese manufacturers of the pipe product known as oil country tubular goods sharply reduced shipments to the U.S. and increased domestic sales efforts, resulting in excess supply, WSP Holdings said. Due to lower drilling, sales volume declined about 51 percent, resulting in the first quarterly loss in WSP Holdings' operating history, the company said. Shares fell 95 cents, or 22 percent, to $3.42 in afternoon trading.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV