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.