China Automotive Systems’ net sales for the second quarter ended 30 June 2015 was down -5.46%to US$109.2m compared with $115.5m in the same period year ago. Income from operations of the firm decreased by 50.02% to $8.3m compared with $16.5m. Income before income tax expenses and equity in earnings of affiliated companies decreased 44.2% to $9.2m compared with $16.5m. Net income for the period was down 43.85% to $7.63m compared with $13.59m in the year ago period.
China Automotive Systems’ net sales for the six months ended 30 June 2015 was up 1.2% to $232.6m compared with $229.8m in the year ago period. Income from operations of the firm was down 32.98%to $17.6m compared with $26.3m. Income before income tax expenses and equity in earnings of affiliated companies decreased to 29.59% to $18.91m compared with $26.86m. Net income was down 26.83% to $16.02m compared with $21,897m in the year ago period.
Qizhou Wu, chief executive officer of CAAS, said, “We are pleased to report that sales were resilient in the face of headwinds in both the passenger and commercial vehicle markets in the second quarter of 2015. Our new products, especially electric power steering for the domestic market and steering products for North America, generated higher sales.”
He further added, “Sales to North America accelerated by 15.2% compared to the same period last year. Our key customer, Chrysler, reported its 63rd consecutive month of year-over-year sales gains in June 2015. The Jeep brand reported that June 2015 sales were the highest June sales in its history and it has achieved 21 consecutive months of year-over-year sale increases. The Jeep brand’s sales grew by 25% in June and Wrangler’s sales growth of 17% represented its best June sales ever. RAM pickup truck sales increased by 1% in June, to its highest June sales in the last 11 years.”
“We believe our strategy of focusing on new product development and penetration of foreign markets positions us to capture market share in multiple markets,” said Wu.
Jie Li, chief financial officer of CAAS, said, “We continued to generate positive cash flow from operations of over $9.6m in the second quarter of 2015 to enhance our financial strength. We are maintaining our leadership position in China as we expand our presence in North and South American markets. Our investment in research and development has led to new products that maintain and increase our market positions in China as we expand in overseas markets.”
Management has revised its revenue guidance for the full year 2015 to be even with 2014 due to the China auto market slowdown. This target is based on the company’s current views on operating and market conditions, which are subject to change.