Palm Beach, FL 3/12/12 (StreetBeat) -- Longhai Steel Inc. (OTC.BB: LGHS), a producer of high quality steel wire products in the People's Republic of China, today announced preliminary results for the Fourth Quarter of 2011, subject to any final audit adjustments.
Financial highlights for Fourth Quarter 2011 include:
• Fourth Quarter 2011 steel wire sales revenue of $197.3 million compared with revenues of $144.5 for the same period of 2010, an increase of 36.5%;
• Fourth Quarter 2011 net income of $6.3 million compared with net income of $4.6 million for the same period of 2010, an increase of 36.4%
• All results are subject to any final audit adjustments, and will be filed in final form with our Annual Report on Form 10-K by March 30
Mr. Steven Ross, Executive Vice President of Longhai, said, "As the newly opened steel wire facility continues to ramp output, we expect to see continued year-over-year improvements in operating results throughout 2012. Although current production from our new facility utilizes the same raw material as our other production lines, over the next two quarters we expect to transition to higher quality steel wire to enable us to produce high quality and high margin products. We will continue to keep our shareholders updated on company developments."
Once fully ramped, the new facility will increase our overall capacity by approximately 60%, and have the capability to produce alloy steel, cold forging steel and welding rods. These higher margin products will allow Longhai to also address demand in additional markets beyond construction and infrastructure.
About Longhai Steel Inc.
Longhai Steel Inc. is a leading producer of high quality steel wire. Downstream manufacturers process Longhai 's wire into screws, nails, and wire mesh used to reinforce concrete and for fencing. Longhai's newly opened second production facility also produces higher quality steel wire for specialized applications such as steel wire rope, steel strand, steel belted radial tires, and steel welding rod. All of its sales are delivered in China. Longhai competes using advanced production equipment and process technology, high product quality, fast order fill, and competitive prices. Its rolling and drawing facilities are among the most advanced in the world.
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