ACRB Asia Carbon Industries Inc (CE)

NEW YORK, Nov. 19, 2012 /PRNewswire/ -- Asia Carbon Industries, Inc. ("Asia Carbon", or the "Company") today announced its earnings for the quarter ended September 30, 2012. The Company, whose shares trade in the U.S. under the stock symbol "OTC: ACRB", filed its quarterly report on Form 10-Q with the Securities and Exchange Commission on November 14, 2012.

Highlights of Third Quarter 2012 Financials

• Revenues for the three months ended September 30, 2012 increased 15% to $12,699,296 from $10,997,216 for the same period in 2011.
• Gross profit increased 3% to $2,700,188 in the third quarter of 2012 from $2,632,928 for the same period in 2011.
• Net income for the quarter ended September 30, 2012 increased 11% to $1,697,915 from $1,527,662 for the same period in 2011.
• Earnings per share were $0.03 for both the three months ended September 30, 2012 and 2011; shares outstanding increased from 50.6 million to 52.4 million over the period.
• Tonnage sales of carbon black increased to 13,343 tons in the quarter ended September 30, 2012, up 21% from 10,988 tons in the same period in 2011.

Sales for the three months ended September 30, 2012 totaled $12,699,296, an increase of $1,702,080 or 15%, compared to $10,997,216 for the comparable period of 2011. The increase in sales was primarily the result of increased sales quantities which were offset by decreased unit selling prices.

The Company's total annual carbon black production capacity was 61,000 tons. The annualized production/total capacity utilization rate was 87% and 72% during three months ended September 30, 2012 and 2011, respectively. During the three months ended September 30, 2012 and 2011, the Company sold 13,343 tons and 10,988 tons of carbon black, respectively, an increase of 2,355 tons or 21%.

The increase in sales quantity was largely attributed to an increase in new customers. The average sales price of the Company's products was $882 per metric ton during three months ended September 30, 2012, a decrease of $74 per ton, or 8%, from $956 per ton during three months ended September 30, 2011.

Net income for the three months ended September 30, 2012, was $1,697,915, an increase of $170,253, or 11%, compared to $1,527,662 in the three months ended September 30, 2011. Net income per share was $0.03 both in 2012 and 2011. The increase in net income reflects increased sales and reduced operating expenses.

Yao Guoyun, Asia Carbon's Chairman of the Board and Chief Executive Officer, commented "I am pleased with the Company's performance in the third quarter. The results of operation reflect the quality of our products and the targeted efforts of our sales team. We expect demand for our specialty carbon black to continue to improve in conjunction with China's economy, more specifically the automotive and tire sectors. China represents the world's largest automotive market and we are confident that it will continue to expand for the foreseeable future."

Ms. Guoyun went on to say, "We continue to reinvestment the Company's profits in an aggressive growth strategy, designed to increase the Company's overall capacity and operating efficiency. In June of this year we broke ground on the construction of a 3000KW power plant, which will utilize residual heat from our manufacturing process. Plant construction will be completed by the end of the month and is expected to reduce our energy expenses by approximately $1.3 million annually. This month we also began the conversion of our remaining dry production lines to the manufacture of specialty carbon black. Although the conversion construction may impact our operation in the next several months, projected revenue from specialty carbon black production is anticipated to be approximately $35 million annually."

This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

About Asia Carbon Industries, Inc.

Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high quality carbon black products under the brand name "Great Double Star." The Company was established in 2003 in Shanxi, China's highest coal producing province. Asia Carbon is one of the top ten carbon black producers in the province and has established relationships with a high-profile customer base. The Company went public in 2010 through a registration statement on Form S-1 which was declared effective by the SEC on October 26, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.

Forward-looking statements:

The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based, except as required by applicable law or regulations.

Company contact:

Delong Zhou
Chief Financial Officer
Asia Carbon Industries, Inc.
Phone +1-917-825-2997

SOURCE Asia Carbon Industries, Inc.