Cars

AutoChina cuts 2010 earnings outlook

(Agencies)
Updated: 2010-11-23 13:53

AutoChina International Ltd, which sells and leases commercial vehicles in China, posted third-quarter sales which missed estimates, partly hurt by a decline in demand for heavy trucks, and cut its 2010 earnings outlook.

The Shijiazhuang-based company, which opened fewer stores in the quarter, however, said that it expects a higher number of new truck leases and greater demand for higher-margin value-added services in the second half of 2010. For 2010, AutoChina now sees net income ranging between $34-$38 million, down from its prior forecast of $42-$47 million. It, however, kept its sales forecast of $600-$650 million.

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Analysts on average were expecting 2010 revenue of $652.1 million, according to Thomson Reuters I/B/E/S.

For July-September, the company reported net income of $9.5 million, or 47 cents a share, compared with $7.0 million million, or 60 cents a share, a year ago.

The company, which has a market value of about $490 million, saw a 41 percent jump in revenue to $143.5 million. Operating expenses rose to $10.0 million from $3.4 million.

Analysts were expecting the company to earn 47 cents a share, before special items, on revenue of $159.8 million.