Jinpan Intl (NASDAQ:JST)

Third Quarter 2011 Results

• Net sales for the third quarter were $66.6 million, a 49.3% increase from $44.6 million in the same period last year
• Net income for the third quarter increased to $8.4 million, or $0.51 per diluted share, from $4.4 million, or $0.27 per diluted share, in the same period last year.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan, commented, "We are pleased to announce solid third quarter financial results which reflect continued strong core performance across both our domestic and international segments. Our effort to increase overall sales of higher margin, customized products has been a major initiative for Jinpan in recent quarters and is reflected in our strong results for this quarter. Our domestic business was driven by the continuing trend of higher volume of customized transformer orders. Demand for our products increased, because many state-owned enterprises and private businesses in China expanded their operations resulting in greater demand for cast resin transformers and related products. Our international business enjoyed steady demand in the third quarter fueled in part by rising wind transformer orders from both the U.S. and Europe."

"As of September 30th of this year, our backlog increased to approximately $100 million compared to $91 million at the end of June. Based on current order trends, we expect both domestic and international order flow to remain healthy in the fourth quarter. Consequently, we are raising our full year guidance."

"Our improved outlook for both top line and bottom line financials reflects strong demand for our products and provides us with greater confidence as we progressively execute our expansion initiatives going forward. We continue to leverage our strong research, design and engineering capabilities to increase our market share of high-end customized products, which in turn can generate higher gross profit margins and strengthen our foundation for future growth."

Financial Outlook

As of September 30th, 2011, the Company had a backlog of approximately $100 million, compared to $91 million as of June 30th, 2011, $79 million as of April 30, 2011 and $60 million as of December 31, 2010.

As a result of the Company's third quarter performance coupled with current favorable domestic and international order trends, the Company is raising its financial forecast for the year. For full year 2011, the company anticipates net sales growth of 48%-50% to $213 million-$216 million and net income growth to approximately 75%-80% to $23.4-$24.1 million. The Company maintains its gross profit margin estimate of 36-38% and believes that international sales will account for approximately 12%-14% of full year sales.

CARLSTADT, N.J., April 25, 2011 /PRNewswire/ -- Jinpan International Ltd today announced it has acquired all of the equity interests in Guilin Jun Tai Fu Construction and Development Co. Ltd. ("JTF"), a P.R.C, corporation, from JTF's parent company, Guilin Jin Fu Investment Co. Ltd.

JTF currently holds the property rights to thirty-eight (38) acres of land in the city of Guilin, Guangxi Province.  JTF's primary asset is this acreage, which it acquired through a public auction process.  JTF is also in the process of acquiring an adjacent lot consisting of forty-four (44) acres, the acquisition of which is not yet complete. The cost of acquiring JTF's equity interests is RMB 15 million (approximately $2.3 million U.S. Dollars at an exchange rate of US$1 = RMB 6.53). The Company also assumed RMB 44.2 million (approximately US$ 6.7 million) of debt that JTF owes to its parent company.

The Company intends to build a large scale manufacturing and research and development facility on the site of the acquired land in several phases over the course of the next five years.  The new facility, once fully completed, is expected to have a cast resin transformer manufacturing capacity of approximately 12 million KVA and substantial capacity for manufacturing other electrical distribution products for renewable energy and smart grid applications.

The Company's goal for this new facility over the next five years is to add additional manufacturing capacity for existing product lines, primarily comprised of cast resin transformers, high and low voltage switchgears, and transformer substations.   In addition, the Company also plans to develop and manufacture other power distribution equipment for renewable energy and smart grid applications.   The Company expects to introduce new renewable energy and smart grid products to the market gradually as the Company continues to expand its research and development, manufacturing capabilities and sales networks.  At this time, the Company plans to finance the cost of land acquisition and construction of the new facility using a combination of cash generated from operations and debt financing in China.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan, commented on the acquisition as follows: "Given the long-term demand and investment in smart grids and electrical equipment in China and around the world, it is important for us to address our manufacturing capacity in the coming years in order to capitalize on future growth trends.  Based on estimated demand for our transformer products over the next several years, we believe that it is critical to expand our production capacity to support our growth.

Fourth Quarter Highlights from March 14th, 2011

• Net sales for the fourth quarter were $43.2 million, a 3.6% increase from $41.7 million in the same period last year.
• Gross profit in the fourth quarter decreased 1.8% year over year to $16.9 million from $17.2 million.
• Net income for the fourth quarter decreased 7% to $5.8 million, or $0.35 per diluted share, from $6.2 million, or $0.39 per diluted share, in the same period last year.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan, commented, "Overall we had a solid fourth quarter and believe our growth trends will continue in 2011.  We were pleased to see a sizeable sequential improvement to our gross profit margin due to improved customized orders and international sales shipments.  While the price for silicon steel remains at historic lows, we increased our volume for cast resin transformers at a healthy pace in the fourth quarter.  Our engineering capabilities and high quality transformer products give us an edge over our competitors and allows us to maintain pricing discipline.  International purchase orders have climbed at a steady rate in recent months and we finished the month of February with our highest level of international orders since August 2009. We are hopeful that our international and domestic product demand will continue to rise throughout 2011."

• For the first quarter of 2011, the Company currently anticipates net sales in the range of $25-$27 million, net income of approximately $1.5-$1.7 million and diluted EPS of approximately $0.10.
• For the full year 2011, the Company currently anticipates net sales growth of 20-25% to $173-$180 million, gross profit margin of 36%-38%, net income growth of approximately 43-50% to $19.0-$20.0 million.

CARLSTADT, N.J., Feb. 2, 2011 /PRNewswire/ -- Jinpan International Ltd.today announced that it secured five large domestic China orders inJanuary 2011. Each order is between RMB 6.4 million (approximately US$ 0.95 million ) and RMB 10.7 million (approximatelyUS$ 1.6 million), totaling RMB 40.20 million (approximately US$ 6.0 million).   The orders are all scheduled for delivery between March and June of 2011.  

Three of the five orders, totaling RMB 26.0 million (approximately US$3.9 million), are for transformers and switchgears customized for plants manufacturing polysilicon for solar panels.  The remaining two orders, totaling RMB 14.2 million(approximately US$ 2.1 million), are for customized transformers for other industrial and infrastructure applications.

Mr. Zhiyuan Li, Chief Executive Officer of Jinpan, commented, "We are glad to see strong demand in China for our products in January.  Jinpan has consistently outperformed its competitors in supplying cast resin transformers to polysilicon manufacturers in China.  We intend to grow domestic sales this year by selling new higher value products and extending the application of our core cast resin transformer and switchgear product lines into new sectors."