FOR IMMEDIATE RELEASE
Zhongpin Reports Higher Results for Second Quarter 2009 and Reaffirms Guidance
CHANGGE CITY and BEIJING, China, August 10, 2009 /PRNewswire-FirstCall/ -- Zhongpin Inc. (¡°Zhongpin¡±, Nasdaq: HOGS), a leading meat and food processing company in the People's Republic of China (¡°China¡±) , today reported higher revenues, net income, and diluted earnings per share for the second quarter 2009 and reaffirmed its prior guidance for the full year 2009.
Second quarter 2009 highlights:
- Revenues increased 17.7 percent in the second quarter 2009 to $161.8 million from $137.5 million in the second quarter 2008.
- Net income increased 25.9 percent to $10.7 million in the second quarter 2009 from $8.5 million in the second quarter 2008.
- Diluted earnings per share increased 24.1 percent to $0.36 in the second quarter 2009 from $0.29 in the second quarter 2008.
- The downward trend of hog and pork prices during the second quarter turned upward in June and prices have continued at higher levels in July and early August.
- Prior guidance for 2009 is reaffirmed.
- New vegetable and fruit processing plant in Changge began production in April.
- Construction of a new pork processing plant in Tianjin began in April.
Guidance
Zhongpin¡¯s full year 2009 guidance for revenues continues to be in the range of $780 million to $810 million, with a gross margin of approximately 12.0 percent, net profit margin of at least 6.0 percent, and diluted earnings per share in the range of $1.50 to $1.63, assuming common shares used to calculate diluted EPS are 30.7 million shares. This guidance also assumes that hog and pork prices increase about 10 percent during the third quarter and stabilize at that new level in the fourth quarter.
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