XINGTAI CITY, China, July 26, 2012 /PRNewswire/ -- Longhai Steel Inc. ("Longhai" or "the Company") (OTCQB: LGHS), a producer of high-quality steel wire products in the People's Republic of China, today announced that the Company sold 295,635 metric tons (MT) of steel in the quarter ended June 30, 2012. The second quarter 2012 sales volumes reflect a 22% increase from 242,337 MT sold in the first quarter of 2012 and a 10% increase from 267,938 MT in the second quarter of 2011.
"We continue to see strong demand for our products," explained Steven Ross, Executive Vice President of Longhai Steel. "Despite an industry-wide slowdown in steel demand during the second quarter, we had record sales volumes. These results were even more impressive since our high quality steel wire production did not come online until the end June. We are hopeful that recent actions by the Chinese government to stimulate economic growth will result in strong demand for our steel products in the second half of this year."
Longhai Steel will report its second quarter 2012 results in August 2012.
About Longhai Steel Inc.
Longhai Steel is a leading producer of high-quality steel wire in eastern China, with annual capacity of 1.5 million metric tons. Longhai's wire is manufactured into screws, nails, and wire mesh used for fencing and to reinforce concrete. Longhai recently expanded its production facility to include specialized applications such as steel wire rope, steel strand, steel belted radial tires, and steel welding rod. Demand is based on spending in the construction, automotive and infrastructure industries in China. Company website: www.longhaisteelinc.com.
Safe harbor statement
Certain statements in this news release are forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "estimates," "expect," "future," "intends," "may," "plans," "should," "will," and similar statements.
The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding China's economic growth, general industry conditions including local supply and price of wire, environmental risks, Longhai 's business or growth strategy, Longhai's ability to achieve the new facility's production expectation; Longhai's ability to develop and produce higher margin products that achieve market acceptance; the success of Longhai 's investments, risks, and uncertainties regarding fluctuations in earnings, its ability to sustain its previous levels of profitability including its ability to manage growth, intense competition, wage increases in China, its ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, its ability to successfully complete and integrate potential acquisitions, withdrawal of governmental financial incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies outside China. Although Longhai believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Although these expectations and the factors influencing them will likely change, we are under no obligation to inform you if they do. These and additional risks that could affect Longhai's future operating and financial results are more fully described in its filings with the U.S. Securities and Exchange Commission. These filings are available at www.sec.gov.
Longhai may, from time to time, make additional written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q, and 8-K, in its annual report to shareholders, in news releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Longhai does not undertake to update any forward-looking statements that may be made from time to time by or on its behalf, except as required by law.
Longhai Steel Inc.
Steven Ross (English)
Cindy Han (English and Chinese)
SOURCE Longhai Steel Inc.