China’s Guanwei Recycling reports third quarter
Guanwei Recycling Corp., a manufacturer of
recycled low density polyethylene (LDPE) located in China, reported
continuing strong demand for plastics in China propelled a 28
percent year over year increase in third quarter sales of its
self-manufactured, recycled LDPE core product. Higher costs in
the quarter reduced margins, however, resulting in an approximately
five percent decline in year over year net income. Through the
first 9 months of the year, net income was up 29 percent on a
39 percent gain in revenues which included a 48 percent increase
in sales of self-manufactured recycled LDPE.
•Net revenues in the 2011 third quarter grew to $16,679,012,
up 11.31 percent from $14,983,816 in the year earlier period.
Sales in this year’s third quarter of self-manufactured recycled
LDPE advanced to $16,348,291, up 28.42 percent compared with
$12,730,548 a year earlier, while sales in the quarter of non-LDPE
scrap materials grew 26.1 percent. Last year’s third quarter
included $1,991,009 in sales of purchased recycled LDPE.
•2011 third quarter net income was $3,375,758, or $0.17 per share
compared with $3,547,997 or $0.18 per share in the 2010 third
quarter, on 20 million weighted average diluted shares in both
periods. In the 2011 third quarter, the Company’s cost of revenue
increased 17.34 percent year over year to $11,722,192, mainly
due to higher raw material costs, and operating expenses increased
75.75 percent to $526,604, mainly due to increased remuneration
and staff related costs and higher depreciation expenses.
•Net revenues rose 38.65 percent in the first 9 months of 2011
to $46,579,286 compared with $33,594,779 in the year earlier
period reflecting 47.76 percent year over year growth in core
self-manufactured recycled LDPE sales.
•Net income in the first 9 months of 2011 increased 28.57 percent
to $9,544,400, or $0.48 per share, from $7,423,586, or $0.37
per share a year earlier, on 20 million weighted average diluted
shares in both periods.
•At the end of the 2011 third quarter, cash and cash equivalents
were $15,080,995 compared with $14,940,236 on December 31, 2010.
Shareholders’ equity increased to $29,761,939 from $19,146,812
at year end 2010 as short term borrowings were reduced to zero
from $3,716,377, and retained earnings grew nearly $10 million