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China Precision Steel Announces Second Quarter Fiscal 2009 Results
Posted by: gurufocus (IP Logged)
Date: February 10, 2009 06:01AM

Press Release: China Precision Steel Announces Second Quarter Fiscal 2009 Results

SHANGHAI, China, Feb. 10 /PRNewswire-Asia/ -- China Precision Steel(Nasdaq: CPSL), a niche precision steel processing company principally engagedin producing and selling high precision, cold-rolled steel products, announcedtoday its fiscal 2009 second quarter results for the period ended December 31,2008.

Second Quarter Highlights

    -- Revenue increased 32.9% period-over-period to $17.6 million
    -- Gross profit was $3.5 million, down 26.6% versus second quarter 2008
    -- Net loss of $2.0 million resulting from a $3.8 million allowance for
       bad debt
    -- Fully diluted loss per share of $0.04
    -- Exports generated 75.3% of total sales

"Export demand remained healthy during the quarter resulting in stablesales of our low carbon steel products while the domestic demand for our highcarbon steel products declined as our customers moved to reduce theirinventory," commented Dr. Wo Hing Li, China Precision Steel's Chairman andCEO. "Although our domestic sales were adversely impacted by the globaleconomic downturn, we believe our business will benefit from the Chinesegovernment's economic stimulus plans including a rejuvenation plan for thesteel industry and a Chinese auto industry bailout. Furthermore, precisionsteel products tend to be a leading economic indicator and as such, ourindustry is the first to experience the impact of a purchasing slowdown andwill be the first to benefit from the economic recovery."

Revenue for the second quarter of fiscal 2009 increased to $17.6 million,up 32.9% from $13.2 million in the second quarter of fiscal 2008. The growthin revenue was mainly attributable to the increase in sales volume of 852 tonsto 14,862 tons during the second quarter of fiscal 2009 combined with a 25.3%increase in the average selling price. High carbon and low carbon productsaccounted for 6.1% and 87.3% of sales, respectively, compared to 38.5% and47.6%, respectively, from the prior year period. Exports contributed to 75.3%of total revenue compared to 26.5% in the second quarter of 2008.

Gross profit in the second quarter was $3.5 million, down 26.6% from grossprofit of $4.7 million in the second quarter of fiscal 2008. Gross margin was19.6% compared to 35.5% in the same period a year ago. The decline in grossmargin was mainly due to the exceptionally high gross margin in the secondquarter of fiscal 2008 as a result of strong sales of the Company's highmargin products for both high carbon and low carbon steel in addition to theinability to pass on all of the higher raw material cost to customers andlower sales of the higher margin products during the second quarter of fiscal2009. While China Precision Steel always strives to maximize its gross margin,the Company believes a healthy and achievable gross margin target for itsbusiness for the current economic environment is in the low 20%.

Selling expenses for the second quarter of fiscal 2009 were $1.1 million,or 6.4% of revenue, compared to $180,744, or 1.4% of revenue, in the secondfiscal quarter of 2008. The increase in selling expenses was primarilyattributable to an increase in agent commission associated with the order fromSalzgitter Mannesmann International GMBH, which represented 64% of sales forthe quarter, as well as an increase in transportation costs and customclearing charges in relation to the increase in exports. Administrativeexpenses were $587,105, or 3.3% of revenue, compared to $846,220, or 6.4% ofrevenue. The decline in administrative expenses was mainly due to the lowerSEC compliance costs and professional fees as there was no financing activityduring the quarter.

Operating loss for the second quarter was $2.1 million compared tooperating income of $3.6 million in the same period a year ago. Contributingto the operating loss for the quarter was an allowance for bad debt in theamount of $3.8 million due to a dispute over services rendered by the Company.This was a one-off event and its impact on financial statements has been fullyreflected.

Net loss for the second quarter of fiscal 2009 was $2.0 million comparedto net income of $3.5 million in the prior year period. Fully diluted lossper share was $0.04 compared to fully diluted earnings per share of $0.08 inthe comparable period a year ago. Weighted average diluted shares outstandingfor the quarter increased to 46.6 million from 43.6 million in prior yearperiod.

Six Months Financial Results

Revenues for the first six months of fiscal 2009 were $42.9 million, up6.2% from revenues of $40.4 million in the first six months of fiscal 2008.Gross profit was $7.4 million, down 36.4% from gross profit of $11.6 millionfor the six months of fiscal 2008. Gross margin was 17.2% compared to 28.8%for the comparable period a year ago. Operating income was $1.1 million, down87.8% from operating income of $9.3 million in the first six months of fiscal2008. Net income was $900,753, down 90.3% from net income of $9.3 million inthe same period a year ago. Fully diluted earnings per share were $0.02compared to $0.23 in the first six months of fiscal 2008. Diluted weightedaverage shares outstanding were 46.6 million compared to 40.8 million in thefirst six months of fiscal 2008.

Financial Condition

As of September 30, 2008, China Precision Steel had $14.8 million in cashand cash equivalents, no long-term debt, total liabilities of $41.3 millionand working capital of $53.4 million. Shareholders' equity was $122.2 million,compared to $120.3 million as of June 30, 2008. Days Sales Outstanding were122 days, down from 138 days in the second quarter of fiscal 2008. TheCompany generated $8.7 million in cash flow from operating activities in thefirst half of fiscal 2009.

Business Outlook

China Precision Steel has begun the construction of its third cold rollingmill and expects the mill to begin production in June 2009. The new mill isdesigned to process steel with a width up to 1450 mm and will be a tandem millwith best-in-class gauge control and shape performance capable of producinghigh quality steel for exposed and unexposed products. The Company expects tomake an additional investment of $900,000 to complete the mill. The additionof the third mill is expected to enhance the Company's market position byincreasing production design capacity by 33%, once fully operational, andbroaden the Company's product line offerings.

"We believe that the mid- to long-term market opportunity for ourprecision products remains attractive and have therefore, stayed on schedulewith the construction of our third mill. Moreover, we have strengthened ourbalance sheet by reducing accounts receivables and current liabilities whichcontributed to the Company generating over $8 million in cash during the firstsix months of fiscal 2009," Dr. Li commented. "While we expect that theimpact of the global economic slowdown will persist for the foreseeablefuture, we continue to negotiate new contracts and believe we are wellpositioned to expand our market penetration over the next several years."

About China Precision Steel

China Precision Steel is a niche precision steel processing companyprincipally engaged in the production and sale of high precision cold-rolledsteel products and provides value added services such as heat treatment andcutting medium and high carbon hot-rolled steel strips. China PrecisionSteel's high precision, ultra-thin, high strength (7.5 mm to 0.05 mm)cold-rolled steel products are mainly used in the production of automotivecomponents, food packaging materials, saw blades and textile needles. TheCompany primarily sells to manufacturers in the People's Republic of China andis expanding into overseas markets such as Nigeria, Thailand, Indonesia andthe Philippines. China Precision Steel was incorporated in 2002 and isheadquartered in Sheung Wan, Hong Kong. Additional information can be found atthe Company's website [chinaprecisionsteelinc.com] .

Conference Call

China Precision Steel will host a conference call on Tuesday, February 10,2009 at 9:00 am EST to discuss second quarter results. To participate in thelive conference call, please dial the following number fifteen minutes priorto the scheduled conference call time: +1-888-482-0024. International callersshould dial +1-617-801-9702. When prompted by the operator, mention ConferencePasscode 204 825 68.

If you are unable to participate in the call at this time, a replay willbe available for 14 days starting on Tuesday, February 10, 2009 at 11:00 a.m.Eastern Time. To access the replay, dial +1-888-286-8010 and enter thepasscode 79170764. International callers should dial +1-617-801-6888 and enterthe same passcode.

This conference call will be broadcast live over the Internet and can beaccessed by all interested parties by clicking on[www.chinaprecisionsteelinc.com] . Please access the link at leastfifteen minutes prior to the start of the call to register, download, andinstall any necessary audio software. For those unable to participate duringthe live broadcast, a 90-day replay will be available shortly after the callby accessing the same link.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Actof 1995: Certain statements in this press release and oral statements made byChina Precision Steel on its conference call in relation to this release,constitute forward-looking statements for purposes of the safe harborprovisions under The Private Securities Litigation Reform Act of 1995. Thesestatements include, without limitation, statements regarding our ability toprepare the Company for growth, the Company's planned manufacturing capacityexpansion in 2009 and predictions and guidance relating to the Company'sfuture financial performance. We have based these forward-looking statementslargely on our current expectations and projections about future events andfinancial trends that we believe may affect our financial condition, resultsof operations, business strategy and financial needs but they involve risksand uncertainties that could cause actual results to differ materially fromthose in the forward-looking statements, business conditions in China, weatherand natural disasters, changing interpretations of generally acceptedaccounting principles; outcomes of government reviews; inquiries andinvestigations and related litigation; continued compliance with governmentregulations; legislation or regulatory environments, requirements or changesadversely affecting the businesses in which China Precision Steel is engaged;cyclicality of steel consumption including overcapacity and decline in steelprices, limited availability of raw material and energy may constrainoperating levels and reduce profit margins, environmental compliance andremediation could result in increased cost of capital as well as otherrelevant risks not included herein. The information set forth herein should beread in light of such risks. You are urged to consider these factors carefullyin evaluating the forward-looking statements herein and are cautioned not toplace undue reliance on such forward-looking statements, which are qualifiedin their entirety by this cautionary statement. The forward-lookingstatements made herein speak only as of the date of this press release and theCompany undertakes no duty to update any forward-looking statement to conformthe statement to actual results or changes in the Company's expectations.

- Financial Tables Follow -



                  China Precision Steel, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Operations
          For the Three and Six Months Ended December 31, 2008 and 2007
                                   (Unaudited)

                              Three Months Ended        Six Months Ended
                          December 31, December 31, December 31, December 31,
                              2008         2007         2008         2007
    Revenues
      Sales revenues      $17,573,959  $13,228,321  $42,924,378  $40,415,556
      Cost of goods sold   14,122,622    8,528,852   35,520,383   28,773,987

    Gross profit            3,451,337    4,699,469    7,403,995   11,641,569

    Operating expenses
      Selling expenses      1,122,532      180,744    1,333,830      281,449
      Administrative
       expenses               578,105      846,220    1,040,205    1,332,596
      Allowance for bad and
       doubtful debts       3,829,462       25,782    3,829,462      651,780
      Depreciation and
       amortization expense    33,318       15,798       59,521       29,430

      Total operating
       expenses             5,563,417    1,068,544    6,263,018    2,295,255

    Income/(loss) from
     operations            (2,112,080)   3,630,925    1,140,977    9,346,314

    Other income (expense)
      Other revenues          138,998      783,255      259,701      792,410
      Interest and finance
       costs                 (320,777)    (316,860)    (648,182)    (759,001)

      Total other income
       (expense)             (181,779)     466,395     (388,481)      33,409

    Net income/(loss) from
     operations before
     income tax            (2,293,859)   4,097,320      752,496    9,379,723

    Provision for (benefit
     from) income tax
      Current                (318,878)     610,869     (148,257)   1,116,594
      Deferred                     --           --           --   (1,064,028)

      Total income tax
       expense               (318,878)     610,869     (148,257)      52,566


    Net income/(loss)     $(1,974,981)  $3,486,451     $900,753   $9,327,157

    Basic earnings
     per share                 $(0.04)       $0.08        $0.02        $0.23

    Basic weighted
     average shares
     outstanding           46,562,955   43,031,346   46,559,531   40,204,745

    Diluted earnings
     per share                 $(0.04)       $0.08        $0.02        $0.23

    Diluted weighted
     average shares
     outstanding           46,562,955   43,639,342   46,566,423   40,809,437

    The Components of
     comprehensive income:

      Net income/(loss)   $(1,974,981)  $3,486,451     $900,753   $9,327,157
      Foreign currency
       translation
       adjustment             677,905    1,179,322      750,424    2,084,859


    Comprehensive
     income/(loss)        $(1,297,076)  $4,665,773   $1,651,177  $11,412,016



                   China Precision Steel, Inc. and Subsidiary
                     Condensed Consolidated Balance Sheets

                                                (Unaudited)
                                                December 31,      June 30,
                                                    2008            2008
                        Assets
    Current assets
      Cash and equivalents                      $14,763,665      $18,568,842
      Accounts receivable
        Trade, net of allowance for bad and
         doubtful debts of $4,877,672 and
         $1,033,479 at December 31 and
         June 30, 2008, respectively             23,248,541       33,783,074
        Bills receivables                         7,634,472        4,309,703
        Other                                       307,992          571,746
      Inventories                                18,359,109       17,815,087
      Prepaid expenses                              108,410           58,105
      Advances to suppliers, net of
       allowance of $2,534,410 and
       $2,522,837 at December 31 and
       June 30, 2008, respectively               30,281,090       33,027,365

    Total current assets                         94,703,279      108,133,922

    Property and equipment
      Property, plant and equipment, net         40,646,361       39,199,305
      Construction-in-progress                   25,698,608       16,476,454
                                                 66,344,969       55,675,759

    Intangible assets, net                        2,343,532        1,625,690
    Goodwill                                         99,999           99,999
    Total assets                               $163,491,779     $165,535,370

         Liabilities and Stockholders' Equity
    Current liabilities
      Accounts payable and accrued
       liabilities                              $11,954,266      $12,047,981
      Advances from customers                     4,014,580        6,996,996
      Other taxes payables                        3,566,543        3,976,239
      Current income taxes payable                4,271,276        4,742,387
      Short-term loans                           17,457,984       17,465,799
    Total current liabilities                    41,264,649       45,229,402

    Stockholders' equity:
      Preferred stock: $0.001 per value,
       8,000,000 shares authorized, no
       shares outstanding at December 31,
       and June 30, 2008
      Common stock: $0.001 par value,
       62,000,000 shares authorized,
       46,562,955 and 46,472,955 issued and
       outstanding December 31, and
       June 30, 2008                                 46,563           46,473
      Additional paid-in capital                 75,642,383       75,372,488
      Accumulated other comprehensive
       income                                    10,046,082        9,295,658
      Retained earnings                          36,492,102       35,591,349
    Total stockholders' equity                  122,227,130      120,305,968

    Total liabilities and stockholders'
     equity                                    $163,491,779     $165,535,370



                   China Precision Steel, Inc. and Subsidiary
                 Condensed Consolidated Statements of Cash Flows
               For the Six Months Ended December 31, 2008 and 2007
                                   (Unaudited)

                                                         2008         2007
    Cash flows from operating activities
      Net Income                                       $900,753   $9,327,157
      Adjustments to reconcile net income to net
       cash provided by operating activities
        Depreciation and amortization                 1,825,544      992,570
        Allowance for bad and doubtful debts          3,829,462      615,780
      Net changes in assets and liabilities:
        Accounts receivable, net                      3,801,518  (31,266,517)
        Inventories                                    (461,094)   5,195,155
        Deposits                                             --       15,018
        Prepayments                                     (50,382)    (326,065)
        Advances to suppliers                         2,890,245    1,549,672
        Accounts payable and accrued expenses          (147,831)   1,296,194
        Advances from customers                      (3,006,670)   2,070,883
        Other taxes payable                            (426,823)   2,747,055
        Current income taxes                           (491,584)   1,748,480
        Deferred income taxes                                --   (1,064,028)

    Net cash (used in) provided by
     operating activities                             8,663,138   (7,062,646)

    Cash flows from investing activities
      Purchases of property, plant and equipment
       including construction in progress           (12,954,497)  (5,508,327)

    Net cash (used in) investing activities         (12,954,497)  (5,508,327)

    Cash flows from financing activities
      Exercise of common stock warrants                 269,985           --
      Sale of common stock                                   --   44,433,222
      Advances from/(to) directors, net                      --    2,154,257
      Short-term loans proceeds                              --   16,446,667
      Repayments of notes payable                       (87,690) (17,424,050)

    Net cash provided by financing
     activities                                         182,295   45,610,096

    Effect of exchange rate                             303,887    1,661,126

    Net increase in cash                             (3,805,177)  34,700,249

    Cash and cash equivalents, beginning
     of period                                       18,568,842    5,504,862

    Cash and cash equivalents, end of period         14,763,665  $40,205,111



    For more information, please contact:

    China Precision Steel
     Dan Carlson
     Email: DanielCarlson@comcast.net

    Elite IR
     Leslie J. Richardson, Partner
     Tel:   +852-3183-0283
     Email: Leslie.richardson@elite-ir.com

"Export demand remained healthy during the quarter resulting in stablesales of our low carbon steel products while the domestic demand for our highcarbon steel products declined as our customers moved to reduce theirinventory," commented Dr. Wo Hing Li, China Precision Steel's Chairman andCEO. "Although our domestic sales were adversely impacted by the globaleconomic downturn, we believe our business will benefit from the Chinesegovernment's economic stimulus plans including a rejuvenation plan for thesteel industry and a Chinese auto industry bailout. Furthermore, precisionsteel products tend to be a leading economic indicator and as such, ourindustry is the first to experience the impact of a purchasing slowdown andwill be the first to benefit from the economic recovery."

Revenue for the second quarter of fiscal 2009 increased to $17.6 million,up 32.9% from $13.2 million in the second quarter of fiscal 2008. The growthin revenue was mainly attributable to the increase in sales volume of 852 tonsto 14,862 tons during the second quarter of fiscal 2009 combined with a 25.3%increase in the average selling price. High carbon and low carbon productsaccounted for 6.1% and 87.3% of sales, respectively, compared to 38.5% and47.6%, respectively, from the prior year period. Exports contributed to 75.3%of total revenue compared to 26.5% in the second quarter of 2008.

Gross profit in the second quarter was $3.5 million, down 26.6% from grossprofit of $4.7 million in the second quarter of fiscal 2008. Gross margin was19.6% compared to 35.5% in the same period a year ago. The decline in grossmargin was mainly due to the exceptionally high gross margin in the secondquarter of fiscal 2008 as a result of strong sales of the Company's highmargin products for both high carbon and low carbon steel in addition to theinability to pass on all of the higher raw material cost to customers andlower sales of the higher margin products during the second quarter of fiscal2009. While China Precision Steel always strives to maximize its gross margin,the Company believes a healthy and achievable gross margin target for itsbusiness for the current economic environment is in the low 20%.

Selling expenses for the second quarter of fiscal 2009 were $1.1 million,or 6.4% of revenue, compared to $180,744, or 1.4% of revenue, in the secondfiscal quarter of 2008. The increase in selling expenses was primarilyattributable to an increase in agent commission associated with the order fromSalzgitter Mannesmann International GMBH, which represented 64% of sales forthe quarter, as well as an increase in transportation costs and customclearing charges in relation to the increase in exports. Administrativeexpenses were $587,105, or 3.3% of revenue, compared to $846,220, or 6.4% ofrevenue. The decline in administrative expenses was mainly due to the lowerSEC compliance costs and professional fees as there was no financing activityduring the quarter.

Operating loss for the second quarter was $2.1 million compared tooperating income of $3.6 million in the same period a year ago. Contributingto the operating loss for the quarter was an allowance for bad debt in theamount of $3.8 million due to a dispute over services rendered by the Company.This was a one-off event and its impact on financial statements has been fullyreflected.

Net loss for the second quarter of fiscal 2009 was $2.0 million comparedto net income of $3.5 million in the prior year period. Fully diluted lossper share was $0.04 compared to fully diluted earnings per share of $0.08 inthe comparable period a year ago. Weighted average diluted shares outstandingfor the quarter increased to 46.6 million from 43.6 million in prior yearperiod.

Six Months Financial Results

Revenues for the first six months of fiscal 2009 were $42.9 million, up6.2% from revenues of $40.4 million in the first six months of fiscal 2008.Gross profit was $7.4 million, down 36.4% from gross profit of $11.6 millionfor the six months of fiscal 2008. Gross margin was 17.2% compared to 28.8%for the comparable period a year ago. Operating income was $1.1 million, down87.8% from operating income of $9.3 million in the first six months of fiscal2008. Net income was $900,753, down 90.3% from net income of $9.3 million inthe same period a year ago. Fully diluted earnings per share were $0.02compared to $0.23 in the first six months of fiscal 2008. Diluted weightedaverage shares outstanding were 46.6 million compared to 40.8 million in thefirst six months of fiscal 2008.

Financial Condition

As of September 30, 2008, China Precision Steel had $14.8 million in cashand cash equivalents, no long-term debt, total liabilities of $41.3 millionand working capital of $53.4 million. Shareholders' equity was $122.2 million,compared to $120.3 million as of June 30, 2008. Days Sales Outstanding were122 days, down from 138 days in the second quarter of fiscal 2008. TheCompany generated $8.7 million in cash flow from operating activities in thefirst half of fiscal 2009.

Business Outlook

China Precision Steel has begun the construction of its third cold rollingmill and expects the mill to begin production in June 2009. The new mill isdesigned to process steel with a width up to 1450 mm and will be a tandem millwith best-in-class gauge control and shape performance capable of producinghigh quality steel for exposed and unexposed products. The Company expects tomake an additional investment of $900,000 to complete the mill. The additionof the third mill is expected to enhance the Company's market position byincreasing production design capacity by 33%, once fully operational, andbroaden the Company's product line offerings.

"We believe that the mid- to long-term market opportunity for ourprecision products remains attractive and have therefore, stayed on schedulewith the construction of our third mill. Moreover, we have strengthened ourbalance sheet by reducing accounts receivables and current liabilities whichcontributed to the Company generating over $8 million in cash during the firstsix months of fiscal 2009," Dr. Li commented. "While we expect that theimpact of the global economic slowdown will persist for the foreseeablefuture, we continue to negotiate new contracts and believe we are wellpositioned to expand our market penetration over the next several years."

About China Precision Steel

China Precision Steel is a niche precision steel processing companyprincipally engaged in the production and sale of high precision cold-rolledsteel products and provides value added services such as heat treatment andcutting medium and high carbon hot-rolled steel strips. China PrecisionSteel's high precision, ultra-thin, high strength (7.5 mm to 0.05 mm)cold-rolled steel products are mainly used in the production of automotivecomponents, food packaging materials, saw blades and textile needles. TheCompany primarily sells to manufacturers in the People's Republic of China andis expanding into overseas markets such as Nigeria, Thailand, Indonesia andthe Philippines. China Precision Steel was incorporated in 2002 and isheadquartered in Sheung Wan, Hong Kong. Additional information can be found atthe Company's website [chinaprecisionsteelinc.com] .

Conference Call

China Precision Steel will host a conference call on Tuesday, February 10,2009 at 9:00 am EST to discuss second quarter results. To participate in thelive conference call, please dial the following number fifteen minutes priorto the scheduled conference call time: +1-888-482-0024. International callersshould dial +1-617-801-9702. When prompted by the operator, mention ConferencePasscode 204 825 68.

If you are unable to participate in the call at this time, a replay willbe available for 14 days starting on Tuesday, February 10, 2009 at 11:00 a.m.Eastern Time. To access the replay, dial +1-888-286-8010 and enter thepasscode 79170764. International callers should dial +1-617-801-6888 and enterthe same passcode.

This conference call will be broadcast live over the Internet and can beaccessed by all interested parties by clicking on[www.chinaprecisionsteelinc.com] . Please access the link at leastfifteen minutes prior to the start of the call to register, download, andinstall any necessary audio software. For those unable to participate duringthe live broadcast, a 90-day replay will be available shortly after the callby accessing the same link.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Actof 1995: Certain statements in this press release and oral statements made byChina Precision Steel on its conference call in relation to this release,constitute forward-looking statements for purposes of the safe harborprovisions under The Private Securities Litigation Reform Act of 1995. Thesestatements include, without limitation, statements regarding our ability toprepare the Company for growth, the Company's planned manufacturing capacityexpansion in 2009 and predictions and guidance relating to the Company'sfuture financial performance. We have based these forward-looking statementslargely on our current expectations and projections about future events andfinancial trends that we believe may affect our financial condition, resultsof operations, business strategy and financial needs but they involve risksand uncertainties that could cause actual results to differ materially fromthose in the forward-looking statements, business conditions in China, weatherand natural disasters, changing interpretations of generally acceptedaccounting principles; outcomes of government reviews; inquiries andinvestigations and related litigation; continued compliance with governmentregulations; legislation or regulatory environments, requirements or changesadversely affecting the businesses in which China Precision Steel is engaged;cyclicality of steel consumption including overcapacity and decline in steelprices, limited availability of raw material and energy may constrainoperating levels and reduce profit margins, environmental compliance andremediation could result in increased cost of capital as well as otherrelevant risks not included herein. The information set forth herein should beread in light of such risks. You are urged to consider these factors carefullyin evaluating the forward-looking statements herein and are cautioned not toplace undue reliance on such forward-looking statements, which are qualifiedin their entirety by this cautionary statement. The forward-lookingstatements made herein speak only as of the date of this press release and theCompany undertakes no duty to update any forward-looking statement to conformthe statement to actual results or changes in the Company's expectations.

Source: PRNewsWire



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