– Full Year Top Line Guidance Increased to $370 Million with EPS Guidance of $1.58 –
ZHEJIANG, China, Nov. 15, 2017 /PRNewswire/ — SORL Auto Parts, Inc. (NASDAQ: SORL) (“SORL” or the “Company”), a leading manufacturer and distributor of automotive brake systems as well as other key safety-related auto parts in China, announced today its unaudited financial results for the third quarter and nine-month periods ended September 30, 2017.
Third Quarter 2017 Financial Highlights
Net Sales increased by 59.0% to $101.3 million in the third quarter of 2017 compared to $63.7 million in the third quarter of 2016; Gross margin for the third quarter of 2017 was 26.9%; Income from operations increased 215.7% year-over-year to $11.8 million; Net Income attributable to stockholders rose by 165.0%% to $8.6 million from $3.2 million in the third quarter of 2016; basic and diluted earnings per share were $0.44 in the third quarter of 2017 compared with $0.17 in the third quarter of 2016; Cash and cash equivalents at September 30, 2017 were $7.7 million with working capital of $97.2 million; Annual 2017 guidance was increased to net sales of approximately $370.0 million and net income of approximately $30.5 million.
Mr. Xiaoping Zhang, SORL’s Chairman and Chief Executive Officer, stated, “We are excited to report that our sales growth in all three segments accelerated during the quarter. We continue to capture market share in the Chinese commercial vehicle braking market with our new advanced products and attractive pricing. Our OEM sales soared 70.6% compared with a 28.0% increase in overall commercial vehicle sales and a 31.8% sales growth in trucks. Our aftermarket sales in China grew at an even faster rate of 76.0% in the third quarter.”
“Demand for our innovative products has increased as we provide technologically advanced solutions to meet the evolving needs of our customers. Our stringent cost controls and production efficiencies have enhanced our profitability during the third quarter of 2017,” Mr. Zhang concluded.
Third Quarter 2017 Financial Performance
Net sales for the third quarter of 2017 increased 59.0% to $101.3 million from $63.7 million in the third quarter of 2016. Revenues from the Company’s domestic OEM customers increased 70.6% to $50.5 million from $29.6 million in the third quarter of 2016. Sales from China’s domestic aftermarket increased 76.0% to $31.5 from $17.9 million in the third quarter of 2016. Revenues from international markets rose 19.1% to $19.3 million from $16.2 million in the third quarter of 2016, mainly due to the Company’s growing global