SORL Auto Parts posts better-than-expected Q2 results
(Reuters) - SORL Auto Parts Inc (SORL.O), a maker of commercial vehicle air brake valves, posted better-than-expected quarterly results as sales rose on strength in the commercial vehicle market in China and growth in export markets.
The company posted second-quarter net income of $4.7 million, or 26 cents a share, compared with $4.1 million, or 22 cents a share, a year earlier.
Net sales rose 44.5 percent to $42.2 million. Revenue from international markets was $14.1 million.
Two analysts on average expected earnings of 18 cents a share, before special items, on revenue of $34.7 million, according to Reuters Estimates.
Implementation of new emission standards in China as of July 1 may cause Chinese original equipment manufacturers to increase orders in the first half of the year, which may have a significant downward impact on orders in the second half, Chief Executive Xiaoping Zhang said.
Some key customers will halt production during the third quarter due to government-mandated traffic control related to the Olympics, he added.
"While we still expect to have a strong year, it is possible we will not be able to duplicate the growth rate of the second quarter," Zhang said.
Shares of the China-based company closed at $6.37 Tuesday on Nasdaq.
(Reporting by Eric Yep in Bangalore; Editing by Deepak Kannan)
