Ossen Innovation Co Ltd (ADR) (NASDAQ:OSN) 3Q Dip In Revenue Pushes Stock Into Red


Dallas, Texas 01/22/2014 (FINANCIALSTRENDS) – Ever since the China based  steel and iron manufacturer Ossen Innovation Co Ltd (ADR) (NASDAQ:OSN) reported mixed 3 quarter 2013 operations earnings on 9th December, the stock has been  under tremendous selling pressure are the markets. It has shed close to 15.6 percent in the past one month and this weakness had extended right into last week’s trading when it registered a 6.6 percent dip in value at the market.

Ossen Innovation Co Ltd (ADR) (NASDAQ:OSN) reported that revenue for the third quarter operations ending on 30th September was down 19 percent while for the first three quarters of the year, revenue shrunk by 24 percent. This weak top line growth was contrasted by a impressive 33 percent increase in gross profits and a stupendous 126 percent increase in net income for the quarter period. It also saw its EPS double in the same period from $0.04 to $0.08.

Ossen Innovation Co Ltd (ADR) (NASDAQ:OSN) Chairman Dr. Liang Tang has been quoted to have said thus to explain the weak numbers, “The market for steel materials used in infrastructure projects in China continued to be challenging in the third quarter of 2013. However, I am pleased to report that Ossen continued to sell more of our higher margin, pre-stressed coated products as a percentage of total sales. Combined with lower raw material prices, this resulted in improved gross profit, gross margin and increased earnings for the third quarter and nine months ended September 30, 2013.”

Providing an outlook for the final quarter of the year, the company chairman had alluded to the continued challenges faced by the industry in the domestic infrastructure sector and hoped to up their sales engagement in the higher margins product coupled with trying to keep down operating expenses.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.