China Automotive Systems Issues 2016 Revenue Guidance; Q4 Profit Declines

(RTTNews) - China Automotive Systems, Inc. (CAAS) announced revenue guidance for the full year 2016 of $450 million. The company noted that its target is based on current views on operating and market conditions, which are subject to change.

Jie Li, CFO of CAAS, said, "We continue to focus on maintaining a strong balance sheet with positive cash flow even as we invest to improve our operations and expand our product portfolio in a competitive market. In early January of 2016, our board of directors approved a stock repurchase plan as our stock is trading at a low valuation based on our analysis. We plan to proceed with stock repurchases as soon as the trading window opens in the middle of May."

In the fourth quarter of 2015, net sales were $120.1 million, compared to $135.3 million in the same quarter of 2014, reflecting an 11.2% year-over-year decline. The company said the net sales decline was mainly due to decreased auto sales in a weak economic environment. Qizhou Wu, CEO of CAAS, said, "Our sales in 2015 reflected the challenges of slower economic growth in China and changes in the demand for steering in 2015."

Net income attributable to parent company's common shareholders was $6.9 million in the fourth quarter of 2015, compared to $9.0 million in the fourth quarter of 2014. Earnings per share were $0.22 compared to $0.28.