ACRB Asia Carbon Industries Inc (CE)

NEW YORK, Aug. 20, 2012 /PRNewswire-Asia/ -- Asia Carbon Industries, Inc. ("Asia Carbon", or the "Company") today announced its earnings for the quarter ended June 30, 2012. The Company, whose shares trade in the U.S. on the OTCQB Tier of the OTC Markets under the stock symbol "ACRB", filed its quarterly report on Form 10-Q with the Securities and Exchange Commission on August 14, 2012.

Highlights of Second Quarter 2012 Financials

• Revenues for the quarter ended June 30, 2012 were $13.2 million, down 2% from $13.5 million for the same period in 2011.
• Gross profit was $2.94 million in the quarter ended June 30, 2012, a decrease of 0.4% from $2.95 million for the same period in 2011.
• Net income for the quarter ended June 30, 2012 was $1.87 million, a decrease of 5.5% from $1.98 million for the same period in 2011.
• Earnings per share remained at $0.04 for the quarter ended June 30, 2012, the same as for the first quarter of 2011.
• Tonnage sales of carbon black increased to 13,158 tons in the quarter ended June 30, 2012, up 4% from 12,698 tons in the same period in 2011.
• By-product naphthalene oil sales more than doubled to 1,050 tons in the quarter ended June 30, 2012, compared to 510 tons in the same period of 2011.

Sales for the three months ended June 30, 2012 totaled $13,194,534, a decrease of $306,338 or 2%, compared to $13,500,872 for the comparable period of 2011. The decline in sales was mainly attributable to the decrease in the market selling price of carbon black.

During the three months ended June 30, 2012 and 2011, the Company sold 13,158 tons and 12,608 of carbon blacks, respectively, an increase of 460 tons or 4%. Management attributes the increase in sales quantity to the quality of Asia Carbon's products and the increase in the number of new customers. 

The Company's total carbon black production capacity is 61,000 tons per annum. The annualized production/total capacity utilization rate was 86% and 83% during three months ended June 30, 2012 and 2011, respectively.

Gross profit was $2,936,673 in the three months ended June 30, 2012, a decrease of $11,905, compared to $2,948,578 for the three months ended June 30, 2011. The gross profit rate has remained consistent at 22% for the three months ended June 30, 2012 and 2011.

Net income was $1,871,477 in the three months ended June 30, 2012, a decrease of $109,963, or 6%, compared to $1,981,440 for the same period in 2011. Net income per share was $0.04 in 2012, the same as for the same period in 2011. The decrease in net income was the result of the decreased unit sales price and an increase in stock incentive expenses.

Yao Guoyun, Asia Carbon's Chairwoman of the Board and Chief Executive Officer, commented, "Although revenues for the second quarter were flat, primarily due to a decrease in market demand reflected in a decline in carbon black pricing, we were able to generate an increase in tonnage sales through an aggressive marketing effort. Asia Carbon continues to pursue our growth objectives as the economy slowly turns around. Construction of our on-site power plant is on-track for a fourth quarter launch and we are evaluating a number of opportunities to expand capacity."

About Asia Carbon Industries, Inc.

Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high quality carbon black products under the brand name "Great Double Star." The Company was established in 2003 in Shanxi, China's highest coal producing province. Asia Carbon is one of the top ten carbon black producers in the province and has established relationships with a high-profile customer base. The Company went public in 2010 through a registration statement on Form S-1 which was declared effective by the SEC on October 26, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.

This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

Forward-looking statements:

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Company contact: 

Michael Segal, Director

Asia Carbon Industries, Inc.

Phone +1-646-623-6999

SOURCE Asia Carbon Industries, Inc.