Fushi Copperweld: After-Hours Trading
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 [generally accepted accounting principles] accounting principles to impact its core operating results.
"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."
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