Highway Holdings Reports Fiscal 2022 Second Quarter Results

About this update from Highway Holdings Limited

[{"type":"text","content":" HONG KONG--(BUSINESS WIRE)--\nHighway Holdings Limited (Nasdaq: HIHO) today reported results for its fiscal 2022 second quarter and six-months ended September 30, 2021.\n\nNet sales for the fiscal 2022 second quarter increased 23.7 percent to $3.4 million from $2.7 million a year earlier. Net income for the same period was $242,000, or $0.06 per diluted share, compared with net income of $229,000, or $0.06 per diluted share, a year earlier.\n\nNet sales for the first half of fiscal 2022 increased 33.2 percent to $6.4 million from $4.8 million a year earlier. Net income for the same period was $575,000, or $0.14 per diluted share, compared with $6,000, or $0.00 per diluted share, a year ago.\n\n“Despite the worldwide impact of COVID-19, including raw material shortages, late material deliveries and price increases, shipping delays due to container shortages, and related issues impacting daily operating activities, our financial performance was strong for the quarter. We are encouraged by the increase of business from certain customers, indicating that these companies appear to be recovering from the pandemic. This bodes well for our business longer term,” said Roland Kohl, chairman, president and chief executive officer.\n\nKohl noted, however, that challenges remain for numerous industrial companies, especially those operating in China – reflecting electronic component, plastic material, steel, aluminum and electricity shortages and environmental considerations. “These factors impacted our material suppliers and consequently Highway Holdings’ production schedules during the quarter,” Kohl added.\n\nAs an example of the unpredictable fluctuations in the manufacturing industry, Kohl noted that sales in July were down about 75 percent of normal activity due to delay of material shipments. “Only exceptional, more expensive, working efforts in August and September at our production facilities in China and Myanmar allowed us to offset the soft start to the quarter,” Kohl said.\n\n“Despite headwinds mentioned above, we are encouraged by our evolving new business opportunities, which have been constrained by strict lockdown and quarantine regulations in China, Hong Kong and Myanmar. This could slow down the company’s strong recovery progress,” Kohl said.\n\nGross profit for the second quarter of fiscal 2022 was $1,093,000 compared with...

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