Asia Carbon reports 2011 net income up 123%

ERJ staff report (LMH)

New York -- Asia Carbon Industries Inc. saw sales rise by 65 percent in 2011 to $49.1 million from $29.7 million in 2010. Net income for 2011 was $7.3 million, more than double the $3.3 million reported in 2010.

Earnings per share were at $0.14 for the year, compared to $0.07 for 2010.

The company's total carbon black production capacity was 61 and 35 kilotonnes per annum as of 31 Dec 2011 and 2010, respectively. The production/total capacity utilisation rate was 78 percent and 92 percent during 2011 and 2010, respectively. Asia Carbon sold 49 683 tonnes of carbon black and naphthalene oil, an increase of 16 478 tonnes, or 50 percent, compared to 33 205 tonnes in 2010.

"Management's decision to expand our wet production capabilities was prudent as borne out by our performance," said Yao Guoyun, CEO of Asia Carbon.

She added, "Demand for our products remains strong and we plan to add manufacturing capacity to our infrastructure in order to meet anticipated market needs. The company has also begun the groundwork for the construction of an on-site power plant. Completion of this project is expected by year-end and will provide us with better control over the availability and cost of electricity to run our operation."

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Press release from Asia Carbon