China Automotive Systems Q2 Profit Declines

(RTTNews) - China Automotive Systems, Inc. (CAAS) Thursday reported second quarter net income attributable to shareholders of $5.4 million or $0.17 per share, down from $7.7 million or $0.24 per share last year.

Net sales slightly declined to $101 million from $109.2 million in the previous year. Qizhou Wu, chief executive officer of CAAS, said, "Our sales in the second quarter of 2016 continued to reflect the effect of currency volatility, slower economic growth in China and the trend in product mix toward electric power steering ("EPS") products... We continue to participate in the growth of the EPS market in China and our EPS sales in the second quarter of 2016 represented 27.8% of total sales. We are investing more in our research and development to broaden our EPS product line and improve our technology to enhance sales growth."

Looking ahead, the Management revised the revenue guidance for the full year 2016 to $430 million due to the depreciation of RMB.