customers want to preserve cash first
special AR plan to collect payment
sensitive to steel product price
implement
July 12th, anshan iron steel group
only a short term challenge
long term 2 billion dollar retrofit project has not changed
share buyback
http://www.reuters.com/article/idCNSGE6780EZ20100809?rpc=44
Fire safety products maker China Fire & Security Group Inc (CFSG.O) posted lower-than-expected quarterly results, and cut its 2010 outlook, hurt by a slowdown in China's iron and steel industry, sending its shares down to a 52-week low.
The company said it suffered a slowdown in execution of projects from the iron and steel industry, which was hurt by lower steel selling prices and rising costs of iron ore.
The company's major clients in the iron and steel industry are facing a difficult time due to the weakness in the housing and household industries, the company said on a conference call with analysts.
China Fire & Security, which is being cautious in the short run due to slower payment from its customers, said it is deliberately slowing ongoing projects to control expenses.
The company cut its 2010 earnings forecast to a range of $1.20 to $1.26 a share, from $1.65 per share to $1.70 per share.
It now expects 2010 revenue of $118 million to $125 million, down from its previous forecast of $135 million to $145 million.
Q2 RESULTS MISS STREET
For the second quarter, the company posted net income of $6.3 million, or 22 cents a share, compared with $8.3 million, or 29 cents a share, a year ago.
Excluding items, the company earned 26 cents a share.
Revenue almost remained flat at $22.8 million.
Analysts on average were expecting earnings of 28 cents a share on revenue of $27.9 million, according to Thomson Reuters I./B/E/S.
Gross margin contraction to 54.3 percent from 63.8 percent was mainly driven by lower revenue contribution from the system contracting projects. The segment contributed about 80 percent of revenue.
Shares of the company, which touched a low of $8.11, were trading down 9 percent at $8.30 Monday morning on Nasdaq. (Reporting by Megha Mandavia in Bangalore; Editing by Jarshad Kakkrakandy)
Gross Margin
between 50 and 60%
new marketing campaign with importance of retrofitting
Nuclear, petrochemical, international expansion
compliant with the new firecode
nuclear vertical: installation capacity for nuclear power plant
Government highly encourage self-reliant technology renovation
further expand market share.
establish a solid footprint in this market. well positioned for this business opportunity.
power generation and transmission
Q2 2. 9 million
regional transformer
thermo hydro,
transportation vertical:
7.9 % year over year
railway
2 small contract in this quarter
bidding for larger contract
International market
1. direct bidding international market
2. bid for project with chinese company
Joint venture, merger acquisition
Wuhan iron and steel hurt more than
Aug 2nd 2010
BEIJING, Aug. 2 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq:CFSG - News) ("China Fire" or "the Company"), a leading industrial fire protection product and solution provider in China, today announced that Mr. Weigang Li, the chairman of the Company, was selected as an executive director of the fifth council of the China Fire Protection Association (the "CFPA") on July 8, 2010.
The CFPA is a nationwide fire protection organization composed of researchers, experts and industry professionals who specialize in the fire protection field. The mission of the CFPA is to maximize the effectiveness of fire prevention and protection technology and to foster advanced nationwide fire safety codes and standards. Every four years, the CFPA nominates distinguished intellectuals, scientists and industry experts from various backgrounds in the fire protection field to become the executive directors of its council.
Mr. Weigang Li was selected as an executive director of the CFPA in recognition of his outstanding commitment and contributions to the fire protection industry. Mr. Li has over 15 years of hands-on experience in management, marketing, and project management and implementation within the industry. In addition to actively leading China Fire, Li is also devoted to advance industrial fire protection technology and fire safety standards throughout China.
Mr. Li commented, "I am thrilled to be recognized by the CFPA and along with other notable researchers and officers from the Ministry of Public Security to be chosen as one of its executive directors. To be honored by such a respected industry association further motivates me to promote fire protection technology development as well as nationwide safety codes and standards enforcement. I am looking forward to leveraging China Fire's technical leadership and deep industry experience to improve and increase knowledge exchange and technology transfer within the fire prevention and protection industry."
No comments:
Post a Comment