May 12, 2010
American Dairy's Q1 profit slumps
American Dairy Inc, one of the leading producers and distributors of infant formula, milk powder and soy in China, reported an 80% fall in quarterly profit, missing analysts' expectations and sending its shares sliding 8%.
Revenue from branded infant formula, the company's core product which represented about 80% of sales, fell nearly 40% to US$64.8 million during the first quarter.
First-quarter net income fell to US$5.5 million, or 25 cents a share, from US$27.8 million, or US$1.55 a share, a year ago. The company's revenue fell 28% to US$81.4 million.
Analysts on average had expected a profit of 31 cents a share on revenue of US$81.2 million for the period.
However, the company expects second-quarter revenue to exceed US$60 million, above analysts' expectations of US$59.8 million, according to reports.
