China Armco Metals, Inc., a distributor of imported metal ores and scrap metal recycler, has announced the company’s financial results for the second quarter of 2008.
According to a report on CNNMoney.com, revenues for the second quarter ended June 30, 2008 increased to $13 million as compared to revenues of $5.7 million in the second quarter ended June 30, 2007. The increase in revenues was attributed to increased sales from its metals distribution business in China.
Net income for the second quarter of 2008 was $1.8 million attributed primarily to increased sales and the income generated from the termination of a contract with one of the company’s customers, as compared to $588,000 in the second quarter of 2007. On a diluted basis, earnings per share for the second quarter of 2008 were $0.24 as compared to $0.08 in the second quarter of 2007.
The record performance for the first six months of 2008 was driven by a strong first half performance in its metals distribution business as sales reached a record $22.8 million for the first six months of 2008 as compared to $9 million for the same period in 2007. On a diluted basis, earnings per share for the first six months of 2008 were $0.34 as compared to $0.04 in the same period in 2007.
At June 30, 2008, total assets were $18.7 million, an increase of more than 98 percent from the $9.9 million at June 30, 2008. At June 30, 2008, shareholder equity reached $7.9 million and total current assets reached $16.4 million with working capital of approximately $5.6 million.
Commenting on the quarter, Kexuan Yao, CEO and chairman of China Armco Metals, Inc., says, “We are pleased with the strong growth of our operations in the first half of 2008 and excited at the prospects for the future. Our current business demonstrated strong top line growth and the recently raised capital will enable us to enter the scrap steel industry. Management believes scrap steel will drive substantial growth in 2009 as the China steel industry has made substantial investments to increase steel recycling capabilities.”
He add, “We are in the best financial position in the history of our company and are ready to take advantage of the vast opportunities in front of us. We look forward to a strong second half of the year as we build our new operations for the future
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