This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Direct Industries Inc. F2Q10 (Qtr End 03/31/2010) Earnings Call Transcript

Richard Galterio

Thank you operator, and all of you who are joining us for our fiscal 2010, second quarter conference call. China Direct Industries recorded revenue of $23.4 million for the 2010, second quarter, and I’m pleased to report that we returned to profitability in this quarter with net income of $1.7 million. This compared to a net loss of $1.5 million in the comparable period in 2009.

We continue to see positive overall gross margins in our various business segments, with our efforts to align our costs with our current revenue base, resulting in a significant improvement in overall works margins in both basic materials and magnesium in China, as well as our consulting operations compared to 2009 period.

Our efforts have resulted in earnings per basic and diluted share of $0.06, up from a loss of $0.06 in the comparable period last year. I am also pleased to report that we are seeing a market pick-up in activity in all of our segments, particularly in magnesium and consulting. We are confident that we will see continued improvements throughout fiscal 2010, as momentum continues to build in these segments, as well as in our chemical operations within our basic materials segment.

In our magnesium segment, I would like to highlight several important churns. First, volume output at our current magnesium operations was 4,215 metric tons. This was up 55% from the same period in 2009. Second, volumes also increased by 19% on a sequential basis from the first quarter of 2010.

Third, quoting activity has increased not only in number of quotes, but also in quantities quoted; and lastly, prices have continued to show a gradual improving trend, with signs that inflationary pressures are building further. Taking these factors into consideration, we have elected to reinitiate production at two facilities, which will increase our current production capacity more than three fold.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CDII $0.00 -15.56%
AAPL $93.02 -1.30%
FB $99.56 -1.40%
GOOG $672.06 -1.80%
TSLA $153.75 7.00%


Chart of I:DJI
DOW 15,582.49 -332.25 -2.09%
S&P 500 1,819.32 -32.54 -1.76%
NASDAQ 4,228.7990 -54.7930 -1.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs