BEIJING, June 25, 2014 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-owned steel producer in China, today announced that the Company is
confident in its business turnaround and currently estimates
earnings per share ("EPS") of $0.08
to $0.12 for the second half of
2014.
For the six months ending December 31,
2014, the Company currently projects:
- Sales to range from $1.3 billion to $1.4
billion, on sales volume of approximately 3 million metric
tons;
- Net income attributable to the Company to range from
$4.5 million to $6.5 million;
and
- EPS attributable to the Company to range from $0.08 to $0.12.
Henry Yu, Chairman and Chief
Executive Officer of General Steel commented, "We are excited that
the changing market fundamentals for the steel industry in
China and our improved production
efficiency gained over the past two years are clearly benefiting
General Steel, providing us with greater confidence for a
profitable second half of 2014. We are confident about our ability
to command firm pricing on our steel products, as smaller
competitors in our region have had to drastically reduce or shut
down production due to their inability to obtain credit facilities.
At the same time, we anticipate that our strong procurement
capability and improved operational-efficiency will significantly
lower our raw material and production costs. It is
our expectation that this combination of firm pricing and
lower costs drives higher gross profits."
"Benefitting from a higher gross margin and our diligent control
of operating expenses, we are well on our way to earning positive
net income for the month of June, and we see a clear path to
earning positive net profits for the remainder of 2014. We feel
very comfortable about our regional market leadership and believe
our focused efforts to lower production costs are now bearing
fruit. As such, we fully expect this recovering trend and positive
momentum will continue well into 2015 and beyond," Mr. Yu concluded.
About General Steel
General Steel, headquartered in Beijing, China, produces a variety of steel
products including rebar, high-speed wire and spiral-weld pipe. The
Company has operations in China's
Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region, and Tianjin municipality
with seven million metric tons of crude steel production capacity
under management. For more information, please visit
www.gshi-steel.com.
To be added to the General Steel email list to receive Company
news, or to request a hard copy of the Company's Annual Report on
Form 10-K, please send your request to
generalsteel@asiabridgegroup.com.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's
current expectations or beliefs about future events and financial,
political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure
that any expectations, forecasts or assumptions made by management
in preparing these forward-looking statements will prove accurate,
or that any projections will be realized. Actual results could
differ materially from those projected in the forward-looking
statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set
forth in the Company's filings under the Securities Act of 1933 and
the Securities Exchange Act of 1934 under "Risk Factors" and
elsewhere, and include: (a) those risks and uncertainties related
to general economic conditions in China, including regulatory factors that may
affect such economic conditions; (b) whether the Company is able to
manage its planned growth efficiently and operate profitable
operations, including whether its management will be able to
identify, hire, train, retain, motivate and manage required
personnel or that management will be able to successfully manage
and exploit existing and potential market opportunities; (c)
whether the Company is able to generate sufficient revenues or
obtain financing to sustain and grow its operations; (d) whether
the Company is able to successfully fulfill our primary
requirements for cash; and (e) other risks, including those
disclosed in the Company's most recent Annual Report on Form 10-K,
filed with the United States Securities and Exchange Commission.
Forward-looking statements contained herein speak only as of the
date of this release. The Company does not undertake any obligation
to update or revise publicly any forward-looking statements,
whether to reflect new information, future events or
otherwise.
Contact Us
General Steel Holdings, Inc.
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
SOURCE General Steel Holdings, Inc.