On February 9, China's Jiangsu Province-based steel finishing company Sutor Technology Group Limited (Sutor) announced its financial results for the second quarter, ended December 31, 2009, of the current fiscal year.
Accordingly, in the period in question, the company's total revenues amounted to $115.2 million, increasing by 22.4 percent, while its net profit totaled $4 million, rising by 24.5 percent, both compared to the corresponding period of the previous fiscal year.
Commenting on the results, Sutor's chairwoman and CEO Lifang Chen said, "We are pleased with the second fiscal quarter financial performance and believe our financial results demonstrate a rebound in the steel industry and improved operations at Sutor. Market demand was driven partially by the Chinese government's stimulus-related spending and by ongoing industrialization in China, combined with the recovery in the global markets. Sutor also benefited from the 13 percent export tax rebate issued by the Chinese government for the purpose of encouraging high-tech and high-quality product exports."
Total sales volume was 188,786 metric tons in the second quarter of the current fiscal year compared to 121,159 metric tons in the same period last year, a 55.8 percent increase. The increases in revenues and sales volume were mainly attributable to the company's new 400,000 metric ton HDG steel production line which contributed approximately $23.8 million in revenue during the second fiscal quarter.
Sutor's production facilities include an acid pickling line, a cold rolling line, HDG lines and a PPGI line, as well as a steel pipe line, with the annual designed production capacities reaching 500,000 mt, 250,000 mt, 700,000 mt, 200,000 mt and 400,000 mt respectively.