Key Developments For Synutra International, Inc.
Synutra International, Inc. (SYUT.O) (Nasdaq)
Synutra International, Inc. Announces Appointment Of Interim CFO
Synutra International, Inc. announced the appointment of Joseph Chow as interim Chief Financial Officer (CFO) in place of Lawrence Lee who has tendered his resignation as CFO to be effective as of November 10, 2009. Mr. Lee is stepping down as the Company's CFO to pursue personal interests in other fields and has agreed to act in an advisory capacity to Synutra through December 31, 2009.
Synutra International, Inc. Announces Sale Of Dairy Assets
Synutra International, Inc. announced that it has signed an agreement to sell three dairy farms and two milk processing factories in China. The buyer is Heilongjiang Wondersun Dairy Co., Ltd., which is paying an estimated $28.9 million for the assets. The proceeds will be added to working capital of the Company.
Synutra International, Inc. Withdraws Stock Registration-DJ
Dow Jones reported that Synutra International, Inc. withdrew a registration for the sale of as many as 7.2 million common shares it originally filed with the Securities and Exchange Commission in April. The Company said that in light of current stock-market conditions and the current trading price of its common stock, the board has determined it is in the best interest of its shareholders to terminate the proposed offering. Goldman Sachs (Asia) LLC, Morgan Stanley and Deutsche Bank Securities were listed as underwriters for the offering.
Synutra International, Inc. Issues Q2 2009 Earnings Guidance
Synutra International, Inc. announced that as a result of the product recall and the write-down of affected inventories, the Company is expected to incur a gross loss of $26.7 million in the second quarter of 2009, compared to a gross profit of $46.6 million for the same period in the fiscal 2007. The Company's net loss for the second quarter of 2009 is expected to be approximately $49.7 million, compared to net income of $9.8 million for the same period in the fiscal 2007.
Synutra International, Inc. To Commence Product Recall
Synutra International, Inc. announced that it has been informed by China's Administration of Quality Supervision, Inspection and Quarantine (China AQSIQ) that certain lots of its U-Smart series of products have been contaminated by melamine, a substance not approved for use in food and linked to recent illness among infants and children in China. The Company believes that the melamine contamination resulted from tainted milk supplies provided by third-party suppliers in the Hebei and Inner Mongolia regions of China. The Company did not add the melamine to the affected products and the Company's normal testing procedures, which are carried out in accordance with Chinese government health regulations and requirements and internationally- accepted quality control procedures, were not equipped to and did not detect the melamine contamination. The Company is fully cooperating with Chinese government authorities and is taking steps to recall all affected products. Synutra will announce the details of its recall process for all affected products as they become available.
