Gulf Resources (GURE) has reported an 1.53 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $10.52 million, or $0.23 a share in the quarter, compared with $10.68 million, or $0.23 a share for the same period last year.
Revenue during the quarter dropped 8.90 percent to $38.81 million from $42.60 million in the previous year period. Gross margin for the quarter expanded 384 basis points over the previous year period to 40.46 percent. Total expenses were 64.04 percent of quarterly revenues, down from 67.36 percent for the same period last year. This has led to an improvement of 332 basis points in operating margin to 35.96 percent.
Operating income for the quarter was $13.96 million, compared with $13.90 million in the previous year period.
Mr. Xiaobin Liu, Gulf's chief executive officer stated, "Despite the continuing weakness in the Chinese economy, especially in industries related to our core business such as oil exploration in terms of money amount, we are pleased to report a quarter with improved income from operations and flat earnings per share. We are especially pleased with the strong performance of our bromine business. If the economy improves, as we believe it eventually will, we will have significant upside leverage in all of our core businesses."
Operating cash flow declines
Gulf Resources has generated cash of $29.21 million from operating activities during the nine month period, down 16.33 percent or $5.70 million, when compared with the last year period.
The company has spent $17.42 million cash to meet investing activities during the nine month period as against cash outgo of $55.71 million in the last year period.
The company has spent $0.29 million cash to carry out financing activities during the nine month period as against cash outgo of $0.34 million in the last year period.
Cash and cash equivalents stood at $141.08 million as on Sep. 30, 2016, up 16.70 percent or $20.19 million from $120.89 million on Sep. 30, 2015.
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