China Automotive Systems Clocks 5.3% Sales Decline In Q4

China Automotive Systems Inc CAAS reported a fourth-quarter FY21 sales decline of 5.3% year-on-year, to $138.8 million, beating the estimate of $126.1 million.
The gross profit margin contracted by 140 basis points Y/Y to 14.2%, and the gross profit declined 13.6% to $19.7 million.
The operating margin was 0.4%, and operating income for the quarter was $0.6 million versus a loss of $(4) million last year.
The company held $161.3 million in cash and equivalents as of December 31, 2021.
The company reported EPS of $0.16, a turnaround from a $(0.10) loss last year.
"We are encouraged for the 2022 year as passenger vehicle sales have risen in the first two months of 2022 and government policies have become more growth-oriented," said CEO Qizhou Wu.
Outlook: China Automotive sees FY22 sales of $510 million, against $498.0 million reported in FY21.
Price Action: CAAS shares are trading higher by 8.78% at $3.47 in premarket on the last check Wednesday.