China Automotive Systems, a power steering components and systems supplier to vehicle makers such as BYD Automobiles and Hainan Mazda, has reported net income for the third quarter of 2005 of $US1.08m ($0.05 per share) compared with $1.97m, ($0.09) a year ago.
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The company earned $0.50m ($0.02) in Q2 2005.
Revenues for the third quarter 2005 were $14.26m compared with $14.22m in 2004 and $16.76m in Q2 2005.
Sales of steering components for light-duty vehicles and cars for the third quarter totalled $9.12m compared with $5.88m a year ago and $9.30m in Q2 2005.
Gross margin for the third quarter was 39%, a slight decrease from 40% in 2004 but up from 36% in Q2 2005.
Operating income in the third quarter was $2.64m compared with $3.37m in 2004 and $1.67m last quarter.
“China Automotive Systems has strived to deliver stable revenue and sustainable development under general price pressure in the competitive automobile parts industry. We focused our efforts on cost control. Despite domestic pricing pressure and the global oil shortage, we continue to experience growth in light-duty vehicle and car-related products, which shows that the demand of our rack and pinions steering products remains strong,” said China Automotive Systems chairman and CEO Hanlin Chen in a statement.
He added: “2005 has been a challenging year for most heavy industrial companies due to the global oil crisis. Despite this challenge, we were able to adjust our strategy and shift our focus from heavy-duty vehicles to light-duty vehicles, which included small trucks, SUVs, minivans and cars.”
