China Automotive Reports Lower Revenue, Income
China Automotive Systems Inc. (Nasdaq: CAAS), a maker of power steering systems, announced Thursday its sales in the first quarter shrank 19 percent to $109.2 million.
The company attributed the decline to lower sales volume of its products in the domestic and North American passenger vehicle 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, compared with $4.3 million, or 14 cents per ADS, a year ago.
"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, China Auto's chief executive officer, said in a statement today.
Despite weaker financial results, the shares of China Automotive Systems rose 4 percent to $2.59 in New York today, as the income was still better than predicted by analysts.
Management of China Automotive reiterated its revenue guidance for the full year of $510 million.
China Automotive Systems offers a range of steering system parts for passenger automobiles and commercial vehicles. It offers four series of power steering systems with an annual production capacity of more than 6 million sets of steering gears, columns, and steering hoses.