Lizhan Environmental Corporation(LZEN.NSDQ), one of China's leading manufacturers of eco-friendly fabrics made from patented technologies, announced today its three- and nine-month results for the fiscal third quarter of 2011 ended June 30, 2011.
Financial Summary
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$mill USD
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Q3 2011
2011
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Q3 2010
2010
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% Chg.
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YTD 2011
2011
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YTD 2010
2010
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% Chg.
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Net Sales
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$11.1
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$12.2
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-9%
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$27.8
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$34.6
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-20%
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Gross Profit
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$1.3
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$2.8
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-56%
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$5.5
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$8.6
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-35%
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Operating Income
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$0.1
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$2.1
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-97%
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$1.8
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$6.7
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-73%
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Net Income
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$0.1
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$1.9
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-96%
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$2.0
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$6.3
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-69%
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EPS
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$0.01
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$0.17
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-97%
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$0.15
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$0.57
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-74%
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"We experienced a challenging quarter, as pricing adjustments and higher sales of recycled leather flocked fabric were more than offset by significant increases in the cost of raw materials and labor," explained Chairman and Chief Executive Officer Jiangfeng Liu. "While we have recently seen stabilization in prices for base fabrics, we anticipate a lag between our recent price increases and margin stability."
Mr. Liu continued, "We met an important milestone in June as we commenced production at our first Evergreen line. We also signed two important customers by securing $12.4 million in Evergreen orders while making consistent volume improvements. We will continue to take additional steps to optimize both output and profitability."
The Company had 30 customers for its ultra suede products and 45 customers for its flocked leather fabric products at June 30, 2011. Total backlog was approximately 1.8 million meters at the end of the third quarter, equal to approximately $6.9 million based on current market prices.
"To minimize production impacted by future government imposed power restrictions we completed the installation of three backup power generators."