China Automotive Q3 Earnings Surge; Lifts Revenue View For 2013

(RTTNews) - China Automotive Systems, Inc. (CAAS), a supplier of power steering components and systems, reported a rise in earnings for the third quarter boosted by a 24.2 percent growth in sales. Further, the company raised its revenue forecast for 2013.

Gross and operating margins also improved during the quarter helping earnings to grow to $8.6 million, or $0.31 per share, from $3.4 million, or $0.12 per share, a year earlier.

The company said, " The net sales increase was mainly due to significant sales growth to SAIC-GM-Wuling Automobile, Brilliance Auto, and other customers such as Dongfeng Peugeot Citroen, BYD and Great Wall which experienced rapid growth. Our sales to the North American market continue to grow as our shipments to Chrysler remains strong." Net sales of the company grew to $90.9 million from $73.2 million a year ago.

Based on its views on the current operating and market conditions, China Automotive raised its forecast for growth in revenue for 2013 to 20 percent, up from previous forecast of 15 percent growth.

Tuesday, the stock closed at $6.66 on the Nasdaq.