China Automotive Systems(US:CAAS) Prnewswireยท2024-05-14 10:00Core Viewpoint - China Automotive Systems, Inc. reported a mixed performance in the first quarter of 2024, with a slight decline in net sales but improvements in gross profit, income from operations, and net cash flow from operating activities [2][3][4]. Financial Performance - Net sales decreased by 2.0% to $139.4 million in Q1 2024, down from $142.2 million in Q1 2023 [4]. - Gross profit increased by 11.6% to $24.1 million, with a gross margin of 17.3%, compared to a gross profit of $21.6 million and a margin of 15.2% in Q1 2023 [2][5]. - Income from operations rose by 26.0% to $9.7 million, compared to $7.7 million in the same period last year [2][7]. - Diluted income per share increased by 17.4% to $0.27, up from $0.23 in Q1 2023 [2][9]. - Cash, cash equivalents, and short-term investments totaled $135.8 million as of March 31, 2024 [2][10]. Sales Breakdown - Net sales of traditional steering products were $92.0 million, down from $94.4 million in Q1 2023 [4]. - Net sales of electric power steering (EPS) products were $47.4 million, slightly down from $47.8 million in the same period last year, representing approximately 34.0% of total net sales [4][3]. - North American net export sales decreased by 12.4% year-over-year to $30.4 million, primarily due to lower demand from Stellantis N.V. [4][3]. - Sales in Brazil increased by 17.6% year-over-year to $12.7 million, driven by higher sales to Fiat [4][3]. Expense Management - Selling expenses increased by 20.6% to $4.1 million, primarily due to higher office expenses, representing 2.9% of net sales [5][6]. - General and administrative expenses rose to $5.5 million from $4.8 million, accounting for 3.9% of net sales [6]. - Research and development expenses decreased by 17.2% to $5.3 million, representing 3.8% of net sales [6]. Income and Taxation - Income before income tax expenses increased by 37.2% to $11.8 million compared to $8.6 million in Q1 2023 [8]. - Income tax expense was $1.7 million for Q1 2024, up from $0.8 million in Q1 2023, mainly due to an increase in GILTI tax expenses [9]. Balance Sheet and Cash Flow - Total accounts receivable were $266.7 million, and accounts payable were $243.0 million as of March 31, 2024 [10]. - Working capital rose to $206.7 million from $180.3 million as of December 31, 2023 [10]. - Net cash provided by operating activities was $10.5 million in Q1 2024, compared to a net cash used of $1.4 million in Q1 2023 [2][10]. Business Outlook - The company reiterated its revenue guidance for the full fiscal year 2024 at $605.0 million, based on current operating and market conditions [11].