Harbin Electric moves to Q2 loss on hefty charge

Harbin Electric Inc. said Tuesday that it moved to a second-quarter loss mostly due to a hefty charge, but adjusted results topped analysts' estimates.

The Chinese maker of electric motors lost $5.4 million, or 24 cents per share, compared with a profit of $6.2 million, or 31 cents per share, during the same period a year earlier.

Excluding a $14 million charge related to a change in the fair value of the warrants issued with 2010 and 2012 notes and a $1.2 million government grant, profit was $7.4 million, or 33 cents per share.

Analysts polled by Thomson Reuters, whose estimates normally exclude one-time items, forecast net income of 28 cents per share.

Sales for the period ended June 30 surged 60 percent to $38.4 million from $24 million, with the acquisition of an industrial rotary motor company adding $17 million to results.

The quarterly sales performance beat Wall Street's estimate of $34.6 million.