CARLSTADT, N.J., July 9, 2012 /PRNewswire/ -- Jinpan
International Ltd. (Nasdaq: JST), a leading designer, manufacturer,
and distributor of cast resin transformers, today announced
preliminary financial results for the second quarter ended
June 30, 2012.
The Company reported preliminary unaudited net sales for the
second quarter of 2012 of approximately US$55.6 million, a 4.6% decrease from
US$58.3 million for the same period
last year. Domestic sales accounted for US$50.8 million of revenue while international
sales represented US$4.8 million,
compared to US$46.1 million of
domestic sales and US$12.2 million of
international sales in the second quarter of 2011.
Preliminary second quarter gross profit margin is expected to
be approximately $14.5 million or 26% of net sales, compared
to US$22.2 million, or 38.1% in the
prior year period. Preliminary second quarter net income and
diluted earnings per share are expected to be approximately
US$2.5 million and US$0.15, respectively.
In light of the preliminary second quarter results, management
is adjusting its full year guidance. Management expects that
-
(i) the Company's net sales for 2012 to
be US$ 219 to US$ 230 million or 0%
to 5% growth over net sales in 2011 of US$
219 million;
(ii) the Company's gross profit margin for
2012 is expected to be approximately 33% of net sales,
compared to gross profit margin in 2011 of 36.7% of net sales;
and
(iii) the Company's net income for 2012 is expected
to experience a decrease of 15% to 20%, compared to US$ 23.8 million in 2011.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "We have experienced a larger than
expected slowdown in the second quarter due to a change in the
design by our primary OEM customer of their wind power product(s),
which resulted in a decrease in our international sales in
the second quarter. Currently, we are waiting for our customer to
provide new specifications, so we can make corresponding design
changes to our cast resin transformer products and integrate our
transformers into their newly designed wind power product(s).
The time that our customer requires for the new design is longer
than we had expected. We continue to work closely with our
customer on product development and integration. Even though we
experienced slower sales to our primary OEM customer, we do expect
a pick up in orders from other OEM customers in the second half of
2012.
"We also experienced some weakness in domestic order flows in
the second quarter due to a softer economic environment in
China. We saw a slow-down in total industrial project
activity in the second quarter, which resulted in fewer customized
transformer sales in the second quarter. The majority of our
domestic sales in the second quarter came from standard product
orders. While industrial activity in China appears to have slowed, we are actively
working on a large number of projects that require completion and
we continue to receive quality, higher margin orders for large
infrastructure projects."
"We believe the second half of 2012 will be stronger for our
business than the first half. We have backlog of approximately
$113 million at the end of
June 2012 and believe that
approximately 80% to 90% of the backlog will be shipped in
2012. Despite the challenges stemming from a softer broader
economic environment, we remain confident in our long term growth
trajectory and will continue working towards the goal of developing
Jinpan into a leading, world class cast resin transformer
manufacturer."
Jinpan plans to release its second quarter earnings results and
conduct an earnings conference call in mid-August. Specific
information related to the date and time of the call will be
released at a later date.
About Jinpan International Ltd.
Jinpan International Ltd. designs, manufactures, and sells cast
resin transformers for power distribution and wind energy products.
Jinpan's cast resin transformers allow high voltage transmissions
of electricity to be distributed to various locations in lower,
more usable voltages. The Company has obtained ISO9001 and ISO14001
certifications for its cast resin transformers. Its principal
executive offices are located in Hainan,
China and its United States
office is based in Carlstadt, New
Jersey.
Safe Harbor Provision
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations and
involve known and unknown risks, and uncertainties or other factors
not under the Company's control, which may cause actual results,
performance or achievements of the company to be materially
different from the results, performance or other expectations
implied by these forward-looking statements. These factors are
listed from time-to-time in our filings with the Securities and
Exchange Commission, including, without limitation, our Annual
Report on Form 20-F for the period ended December 31, 2011 and our subsequent reports on
Form 6-K.
Except as required by law, we are not under any obligation, and
expressly disclaim any obligation, to update or alter any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Jinpan International Ltd.