HONG KONG, June 30, 2014 (GLOBE NEWSWIRE) -- Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fourth quarter and fiscal year ended March 31, 2014, reflecting a sharp increase in profitability on a year-over-year basis and solid operational strength for the quarter and full year.
Net sales for the fiscal fourth quarter were $5.4 million compared with $5.5 million a year earlier. Net income for the same period was $145,000, or $0.04 per diluted share, compared with $274,000, or $0.07 per diluted share, a year earlier mainly due to a tax credit of $142,000 that the company received in fiscal 2013.
Net sales for fiscal 2014 increased 4.6 percent to $22.9 million from $21.9 million a year ago. Net income for the same period increased 33 percent to $596,000, or $0.16 per diluted share, from $448,000, or $0.12 per diluted share, in fiscal 2013.Operating income for the 2014 fiscal fourth quarter more than doubled to $230,000 from $100,000 in the same period a year earlier. For the full 2014 fiscal year, operating income increased sharply to $793,000 from $355,000 the year earlier. "Despite continued challenges for OEM manufacturers in China, we improved profitability and maintained a solid financial position in fiscal 2014. Our goal in the new fiscal year is to establish a presence outside of China for labor-intensive assembly of parts and components to offset increasing labor and administrative costs impacting our operations in China. These proactive initiatives include transferring some of our assembly work to a lower cost facility in Myanmar that complements our manufacturing and technological capabilities in China. We are encouraged by the success of the new Myanmar assembly production operation and by our sales and earnings growth regaining momentum," said Roland Kohl, president and chief executive officer of Highway Holdings. Kohl highlighted Highway Holdings' solid improvement in operational profitability, which he attributed to price increases, a reduction in low margin business and the benefits of the company's continued focus on streamlining its OEM business.