China Automotive Posts Disappointing Results; Stock Falls 4%
China Automotive Systems, Inc. (Nasdaq: CAAS) reported a disappointing drop in sales for the second quarter, ending the week at $2.07 per share, 4 percent lower on the day.
The China-based auto parts supplier said in a statement on Thursday that its net sales reached $106 million in the second quarter of 2019, which represented a 16 percent decrease from the corresponding period in 2018. Net income was $2 million, or 8 cents per share, compared with $996,000 or 3 cents per share, in the same period in 2018.
Qizhou Wu, the chief executive officer of CAAS, attributed the sales decline to the slowdown in China's economy.
"Our sales in the second quarter of 2019 reflected the slowing economy in China and softer consumer spending. As a leading supplier of steering products to the Chinese automobile market, our sales are affected by the performance of the OEM market," Wu said.
Wu Added “We continue to build advanced steering products and broaden our product line to meet the needs of the marketplace and ensure our leadership position."
Going forward, the company said it anticipates full-year revenue of between $430 million and $510 million.