China Automotive Systems Q4 Profit Rises, Sees Higher Revenues In FY14

(RTTNews) - China Automotive Systems, Inc. (CAAS), a power steering components and systems supplier in China, reported Monday higher profit in its fourth quarter with strong growth in revenues. Looking ahead for fiscal 2014, the company's revenue growth rate target is 15 percent year-over-year growth, based on the current views on operating and market conditions.

In pre-market activity on the Nasdaq, China Automotive shares gained $0.25 or 3.05 percent, and is trading at $8.45.

For the quarter, net income attributable to parent company's shareholders was $7.2 million or $0.26 per share, higher than last year's $5.1 million or $0.18 per share.

Net sales increased 27.3 percent to $129.2 million from $101.5 million a year ago. The net sales increase was mainly due to the more-than-doubled sales of electronic power steering products and the significant sales growth to customers.

Gross profit increased 30.2 percent to $22.4 million, and gross margin was 17.3 percent, compared to 17 percent in 2012.

Qizhou Wu, chief executive officer, said, "Our market share continues to expand as our sales growth far exceeded the 13.9 percent overall sales growth of the auto industry in China in 2013.... With our growing sales in both China and North America, we generated strong positive cash flow in 2013 and our financial flexibility is further strengthened."