China Automotive Reports Lower Revenue, Income
Shares of the Chinese auto parts maker rose 4 percent to $2.59 in New York Thursday on better-than-expected income for the first quarter.
Binwei Wang
May 10,2019,05:55

China Automotive Systems Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, announced its net sales for the first quarter shrank 18.5 percent to $109.2 million, compared with $134 million, the year before.

The narrower loss came primarily because of lower sales volume for legacy products in the domestic and North American passenger markets and the domestic heavy-duty vehicle market, as well as the effect of foreign currency exchange.

The Hubei-based company said its net income was $1.5 million, or 5 cents per American depositary share, dropped from $4.3 million, or 14 cents per ADS, the first quarter of 2018.

"Our sales continue to reflect the challenges in the domestic Chinese market. We continue to invest in other advanced steering technologies to broaden our portfolio of steering products to provide a greater range of solutions for our customers." Qizhou Wu, chief executive officer, said.

Shares of China Automotive Systems rose 4 percent to $2.59 in New York today.

Management reiterates its revenue guidance for the full year 2019 of US$510 million.

The company’s last quarter loss shrinks 92 percent as its sales decline.

China Automotive Systems offers a range of steering system parts for passenger automobiles and commercial vehicles. It currently offers four separate series of power steering with an annual production capacity of more than 6 million sets of steering gears, columns and steering hoses.

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