China Automotive Systems Inc., a leading power steering components and systems supplier in China, has reported a net income increase of 7.2 percent year on year to 2.8 million U.S. dollars or 0.09 dollars per fully diluted share for the third quarter ended September 30, 2008. 

Its net sales increased 18.4 percent on year to 36.9 million dollar s in the third quarter from the 31.2 million dollars for the year earl ier period.

Included were 24.6 million dollars from sales of steering products for passenger and light-duty vehicles, presenting an increase of 22 pe rcent on year, 8.8 million dollars from sales of steering products for commercial vehicles, an increase of 8.8 percent on year, and 3.4 mill ion dollars from sales of oil pumps and sensors, an 18.1 percent year- on-year growth.

As of September 30, 2008, the company held 27.2 million dollars of cash and cash equivalents, up from 19.5 million dollars as of December 31, 2007. Also, there were 9.2 million dollars of pledged cash deposits, part of which is expected to turn into free cash in the fourth quarter.

According to Qizhou Wu, chief executive officer of China Automotive Systems, the company has increased its product selling prices in response to higher raw material costs during the summer, especially the commercial vehicle OEMs.

Wu said, "With falling steel prices and our adjusted ASP, we are expecting a much improved gross margin in the fourth quarter. On the sales front, we expect the gradual recovery of domestic auto sales growth following the new emission standard introduction."

"We remain hopeful that the Chinese government's road and port infrastructure build-out plan along with 586 billion dollars stimulus package can benefit the domestic auto industry," he added.

Source : english.chinabuses.com

Editor : Ida

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