NEW YORK ( TheStreet) -- Shares of Fushi Copperweld (FSIN) wilted in a light after-hours session on Friday after the Chinese maker of bimetallic wire products gave a below-consensus view for fiscal 2011 and delayed filing its Form 10-K for fiscal 2010 to complete an accounting review.
The Beijing-based company, whose products are used for telecommunication, utility, transportation and electrical applications, pointed out that it's doesn't expect the reevaluation of its application of certain GAAP
"While it is unfortunate that these reconsiderations are causing a delay in our filing, we stress the fact that these are all non-cash adjustments related to various corporate-level account treatments and will not materially affect our non-GAAP, core operating results such as revenue, gross profit and operating income," said Joe Longever, the company's co-CEO, in a statement.
Fushin said it expects earnings of $1.15 to $1.25 a share in 2011, an outlook that reflects an effective tax rate of 25%. The current average estimate of analysts polled by Thomson Reuters is for a profit of $1.43 a share for the year.The stock was last quoted at $8.50, down 10%, on volume of around 50,000, according to Nasdaq.com. Based on a regular session close at $9.42, the shares were already off 24.5% in the past year; although they'd bounced roughly 40% since hitting a 52-week low of $6.70 in mid-August. Fushin also provided preliminary results for its fourth quarter ended in December, saying revenue was up 45% year-over-year to $265 million from $182.9 million in the same period a year earlier. The company said operating income rose 56% for the quarter to $57.7 million. "We ended a good year on a very strong note, with financial results that we expect will exceed our previous expectations, including our first ever profitable fourth quarter at Fayetteville despite seasonal weakness," Longever said, adding later: "While our business in China was affected by the continued slowdown of the 3G build-out, our diversified business model, product line and global market opportunity helped to offset this factor."