November 20, 2008

Sutor Technology reports Q3 results

Sutor Technology Group announced that in the third quarter ended on March 31st 2008, its revenue edged up slightly to USD 45.3 million from USD 45 million a year earlier. However, Sutor’s quarterly net income doubled to USD 7.8 million versus USD 3.9 million a year ago. Cost of revenue during the three months jumped 38% to USD 98.1 million from USD 71.3 million during the prior year period.

Mr CEO Lifang Chen CEO of Sutor said that “I am pleased to report another strong quarter of growth driven by solid execution of business strategy focusing on vertical integration to provide a total solution for our customers. We completed Phase I of our vertical integration plan by installing the cold-rolled steel and acid pickled steel production lines. The addition of these production lines diversified our product portfolio, enhanced the quality of our sourcing, and mitigated our supply chain risks.”

Sutor Technology Group is one of the leading makers of steel finishing fabrication products in China. It makes hot dip galvanized steel, which accounts for about half of the company’s revenue and pre painted galvanized steel, which made up about 32% of the firm’s revenue during fiscal 2007 ended June 30th 2008.