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SHANDONG, China, Jan. 21, 2013 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced financial guidance for fiscal year 2013.
Due to the influence of the European debt crisis and the slowdown in the domestic economy, the Company has not been able to meet its previously announced earnings forecast set forth in the Company's 2012 financial guidance. As the market demand driven by the economy condition continues to fall, the bromine sales price experienced significant decline over the year, which adversely affected the Company's operating performance.
"Due to the impact of the decrease in market demand driven by the worsen economic condition, the average selling price of price had declined to as low as RMB18,500 per tonne in September, which was significantly lower than the estimated lower range of RMB23,150 per tonne in the Company's 2012 financial guidance. Despite the fact that we have implemented a series of cost-saving and control measures throughout the year to overcome the tough operating environment, such low bromine price level still resulted in a decrease of approximately 15% in our performance in fiscal 2012, as compared to the previously announced earnings forecasts." Mr. Liu, the CEO of the Company continues, "We expect that in the year 2013, stimulus plans to be issued as a result of the replacement of the top officials in China's central government will stimulate the weak economic environment. We believe the average selling price of bromide in the year 2013 will further increase and drive our business performance to grow at least 30% year on year basis."
Based on the current business outlook and the anticipated bromine price levels, the Company forecasts its total revenue and net income to record approximately $122.8 million and $18.7 million, respectively, in fiscal year 2013.