November 17, 2009

American Dairy swings to profit in Q3

American Dairy, a producer and distributor of milk powder and soy in China, reported a US$11.1 million net income for the third quarter, compared to a loss of US$22.1 million in the same period last year.

Revenue escalated 94.1 percent to US$72.1 million from US$37.2 million in the year-ago quarter, but failed to meet analysts' estimates of US$74.13 million.

Contributions from milk powder products were about US$55.9 million or 77.5 percent of sales, up 209 percent from US$18.1 million or 48.7 percent of sales in the same period last year.

For the nine-month period, net income amounted to US$43.3 million compared to a loss of US$11.4 million in the same period last year. Revenue surged to US$227.1 million from US$113.6 million in the same period last year.

American Dairy has also lowered its revenue outlook for 2009 to between US$270-US$290 million from its earlier US$330-US$360 million outlook.