In the company’s news yesterday,
Puda Coal, Inc. reported its 3rd quarter financial results today and the numbers are strong. Revenue hit $74.1 million, an 82% increase over third-quarter 2007’s revenues. Operating income came in at $9.0 million, while net income reached $6.5 million.
Sales of cleaned coal increased 22.6% from the same period last year to 603,000 metric tons. Puda was able to increase prices to $123 per metric ton. Puda has launched its website, www.pudacoalinc.com, and will present investor road shows in the United States as well as appearing at the annual Rodman & Renshaw Global Investment conference on November 10-12, 2008 in New York City.
“We are extremely pleased with the significant increase in both our top and bottom line performance during the third quarter, which was the result of strong demand for our high grade coking coal and a substantial increase in selling prices,” said Mr. Zhu, CEO and President of Puda Coal. He also noted that Puda “plan[s] to maintain a strong level of cash flow and liquidity to fuel our operations in the fourth quarter of 2008 and in 2009.”
China’s steel industry has slowed production because of high raw material prices and other factors. Puda believes the slowing demand for steel will have a slight impact on its sales for at least the next two quarters. However, Puda believes the long-term outlook for its coal washing operations is positive. Furthermore, Puda’s core customer base remains stable.
Demand for high-grade coking coal is expected to increase as China’s western provinces continue with development programs and those programs keep steel demand at steady levels. Puda’s output capacity is capable of increasing to meet any increased demand.
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