March 29, 2010 / 3:07 PM / in 8 years

UPDATE 1- SORL Auto Parts Q4 profit beats Street view; shares up

* Q4 EPS $0.28 vs est $0.19

* Q4 sales up 63 pct to $41 mln vs est $36.25 mln

* Sees Q1 sales $30 mln vs est $28.07 mln

* Shares up as much as 10 pct

March 29 (Reuters) - Chinese air brake systems maker SORL Auto Parts Inc (SORL.O) posted better-than-expected quarterly results, helped by strong sales and margins from its domestic original equipment manufacturer market, and forecast first-quarter sales above market estimates.

The company’s fourth-quarter net income was $5.0 million, or 28 cents a share, compared with $1.8 million, 10 cents a share, in the year-ago period.

Sales rose 63 percent to $41 million.

Analysts on average were expecting the company to earn 19 cents a share on revenue of $36.25 million, according to Thomson Reuters I/B/E/S.

    The company said it sees sales of about $30 million in the first quarter of 2010. Analysts expected revenue of $28.07 million.

    SORL also said it signed a preliminary agreement with the Shandong Shifeng Group, a Chinese agricultural vehicle maker, to increase its sales of brake systems and related products. The two companies also plan to develop new products.

    The company said it also secured a joint development and multi-year supply agreement with Shenzhen Wuzhoulong Motors Co Ltd, an alternative energy bus manufacturer in China, to supply clutch cylinders.

    Shares of the company were up 3 percent at $9.98 in morning trade Monday on Nasdaq. They touched a high of $10.65 earlier in the session. (Reporting by Vinay Sarawagi in Bangalore; Editing by Maju Samuel)

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