SHOUGUANG, China, May 18, 2016 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced its Sales and Earnings Guidance for 2016.
For the year 2016, Gulf Resources projects annual revenue from $160-$170 million compared to revenues of $162 million in 2015. Net Income is projected to be between $35-36 million, compared to $34.1 million in 2015. Fully diluted EPS should equal or somewhat exceed the $0.74 reported in 2015.
For the second quarter, revenues should be between $49-$50 million, compared to $49.35 million the second quarter of 2015. Net income should be between $10-$11 million, as compared to $10.8 million in the second quarter of 2015. EPS should be between $0.21-$0.24, compared to $0.23 in the second quarter of 2015.
These projections represent management’s best estimates at the current time. They assume no improvement in the current weakened state of the Chinese economy or in some of the economically sensitive industries that are customers of Gulf Resources. While management does believe that the economy will improve at some point, it wants to maintain its conservative approach.
These projections also assume that there will be costs but no revenues associated with the natural gas drilling project in Sichuan. Once drilling has begun, Gulf Resources will update these projections.
In addition, to further keep investors informed, Gulf Resources has posted a new investor presentation to its website. The presentation can be found in the “About Gulf” tab, under Corporate PPT.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), Shouguang City Rongyuan Chemical Co, Limited (“ SCRC”) and Daying County Haoyuan Chemical Company Limited (“DCHC”). The company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents. SCRC is a leading manufacturer of materials for human and animal antibiotics in China and other parts of Asia. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.
Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the company's reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
Source:Gulf Resources, Inc.