China Automotive Systems Q2 net income increases

China Automotive Systems, a supplier of power steering components and systems, has reported net income of $4.7 million or $0.18 per fully diluted share in the second quarter of 2008, an increase of 93.2%, compared to $2.5 million in the second quarter of 2007.

The company has reported net sales of $46.5 million for the second quarter of 2008, an increase of 28.1%, compared to $36.3 million in the same period of 2007. Gross profit for the second quarter of 2008 increased 20% to $14.4 million, compared to $12.1 million in the same period of 2007.

The company's gross margin increased to 31.1% in the second quarter of 2008. Operating income for the second quarter of 2008 was $5.5 million, compared with $5.9 million reported in the same period of 2007.

Qizhou Wu, CEO of China Automotive Systems, said: "After winning the FAW Volkswagen contract last year, we are excited to enter another European automakers' auto parts purchasing system in China. After an almost three-year evaluation, Peugeot has approved the performance and quality of our products to be installed in their flagship vehicles in China."