China Automotive Systems up on preliminary Q2 results

China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, yesterday announced preliminary results for the second quarter of 2008, with revenue expected to be over US$52 million compared with US$36 million in the second quarter of 2007, reflecting over 43% year-over-year growth.

In the 2008 second quarter, diluted earnings per share (EPS) are expected to be between $0.18 and $0.22, compared with second quarter 2007 diluted EPS of $0.10. The 2008 second quarter results were highlighted by solid performances across China Automotive Systems' business segments and strong cash flow from operations. China Automotive Systems has also renewed their contracts with all of its key customers.

"We are very confident about the favorable market outlook for our long-term growth. Despite the slowdown of the US and European auto market, the Chinese domestic auto market maintains a healthy growth momentum. Also, with the rising fuel price in China, most of our large OEM customers, who are economy car manufacturers, will benefit from increasing market demand for small-size vehicles. We strive to continue to win new contracts and expand our production capacity to increase our earnings, and further enhance our long-term shareholder value," Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, commented.

Based in Hubei province of China, China Automotive Systems operates through seven joint ventures and offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently has an annual output of 1.1 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese automakers such as FAW Group, Donfeng Motor, Brilliance China Auto, Beiqi Foton Motor, Chery Auto, among others.