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

Jinpan International Announces Preliminary Second Quarter 2010 Financial Results

CARLSTADT, N.J., July 16 /PRNewswire-FirstCall/ -- Jinpan International Ltd. (Nasdaq: JST), a leading designer, manufacturer, and distributor of cast resin transformers for voltage distribution equipment, today announced preliminary financial results for the second quarter ended June 30, 2010.

The Company reported preliminary unaudited net sales for the second quarter of 2010 of $36.8 million, a 10% decrease from $40.9 million for the same period last year. Domestic sales accounted for $30.5 million of revenue while international sales represented $6.3 million. Preliminary second quarter net income and diluted earnings per share are expected to be approximately $2.0 million and $0.12, respectively. Second quarter 2010 net income was adversely impacted by a $2.5 million increase in income taxes related to the distribution of profits from subsidiaries to the parent company, Jinpan International, Ltd.

Second quarter preliminary gross profit is expected to be $16.0 million, or 43.4% of revenue, compared to $19.0 million, or 46.6% in the prior year period.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan, commented, "While demand from domestic customers has been strong, orders in our international business have taken longer to materialize than originally anticipated. Although the framework supply agreements we signed with a primary OEM customer in early 2010 indicated increased demand for 2010, we do not believe that we will be able to realize the revenue from many of these orders in 2010 due to the delayed placement of orders by the OEM customer.

"Domestically, demand remains solid but we continue to face a competitive price environment in China due to depressed prices of silicon steel, a significant component in cast resin transformers. This allows smaller manufacturers to compete aggressively with Jinpan on price. For 2010, we expect domestic sales volume for our products to increase approximately 10% while pricing in our domestic business is expected to decline approximately 20% compared to last year."

Mr. Li continued, "In 2008, China changed its tax law structure where profits generated from Chinese companies distributed to a foreign company incur a 10% income tax. At the end of June, our Chinese subsidiaries paid a one-time tax expense of approximately $2.5 million incurred by the allocation of approximately $25 million for profit distribution to the parent Company.

"At this time, we are reducing our guidance for the full year. We now estimate net sales for 2010 will decrease approximately 10-15% compared to net sales in 2009. Net income is expected to decline 45-50% as compared to 2009, primarily due to delayed international orders and more taxes incurred this year.

1 of 2

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
JST $3.97 0.25%
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%
TSLA $230.26 -0.58%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs