OREANDA-NEWS. February 06, 2013. General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), one of China's leading non-state-owned producers of steel products and aggregators of domestic steel companies, today announced financial results for the second quarter ended June 30, 2011 and the third quarter ended September 30, 2011. In conjunction with this announcement, the Company has filed the corresponding Quarterly Reports on Form 10-Q with the U.S. Securities & Exchange Commission ("SEC"), reported the press-centre of General Steel. 

"The completion of these financial reports marks an important step forward for General Steel. Our finance team and audit partners continue to work diligently to complete the additional quarterly and annual filings to bring the Company current in its reporting obligations and to regain compliance with NYSE continued listing requirements," said Henry Yu, Chairman and Chief Executive Officer of General Steel. "We have made a great deal of operational progress. I believe that our business is markedly stronger as a result of favorable trends in our core market of Western China, as well as internal measures we have taken to improve our business at the manufacturing level and elsewhere. I would like to thank our team for their tireless efforts to complete these filings and our shareholders for their continued support of the Company."

General Steel is currently preparing its Annual Report on Form 10-K for the year ended December 31, 2011 and expects to file it around February 15, 2013. General Steel is also preparing its Quarterly Reports on Form 10-Q for the first, second and third quarters of 2012, and plans to file these reports with the SEC as soon as practicable.

Second Quarter 2011 Financial Summary
Revenue increased 111.6% year-over-year to USD 1.1 billion in the second quarter of 2011, from \\$502.0 million in the second quarter of 2010.

Second quarter 2011 sales volume totaled approximately 1.8 million metric tons, compared with 1.0 million metric tons in the second quarter of 2010.

Gross profit increased 216.9% year-over-year to USD 23.3 million, or 2.2% of revenue, up from USD 7.4 million, or 1.5% of revenue in the second quarter of 2010.

Operating loss for the quarter was USD (3.7) million, compared with an operating loss of \\$(6.3) million in the second quarter of 2010.

Net loss attributable to the Company was USD (22.9) million, or USD (0.42) per diluted share based on 54.3 million weighted average shares outstanding, compared with a net loss of USD (2.0) million, or USD (0.04) per diluted share based on 52.1 million weighted average shares outstanding in the second quarter of 2010.

The increased net loss for the second quarter of 2011 was primarily attributable to a USD 5.4 million increase in impairment charge on equipment, an increase of USD 6.7 million in interest expense on capital lease and a decrease of USD 8.9 million related to the change in fair value of derivative liabilities, partially offset by an increase of USD 3.4 million in gain from debt extinguishment. In addition, we determined the net operating loss carry forward may not be fully realizable and provided 100% valuation allowance charges of USD 19.3 million on our deferred tax assets.

Third Quarter 2011 Financial Summary
Revenue increased 116.9% year-over-year to USD 998.2 million, from USD 460.3 million in the same period in 2010.

Sales volume in the third quarter of 2011 totaled approximately 1.7 million metric tons, compared with approximately 0.9 million metric tons for the same period in 2010.

Gross profit increased 150.6% to USD 34.1 million, or 3.4% of revenue, compared with USD 13.6 million, or 3.0% of revenue for the same period in 2010.

Operating income totaled USD 9.7 million, compared with USD 4.0 million for the same period in 2010.

Net loss attributable to the Company was USD (13.8) million, or USD (0.25) per diluted share, based on 55.2 million weighted average shares outstanding, compared with a net loss of USD (3.8) million, or USD (0.07) per diluted share, based on 53.9 million weighted average shares outstanding in the third quarter of 2010. The increase in net loss for the third quarter of 2011 was primarily related to an increase of USD 5.5 million in impairment charges on equipment, an increase of USD 10.6 million in interest expense on capital lease and a USD 14.3 million increase in interest expense on bank borrowings, partially offset by USD 9.7 million in operating income.

Balance Sheet
As of September 30, 2011, General Steel had cash and restricted cash of approximately USD 282.4 million, compared to USD 263.1 million as of December 31, 2010. The Company had an inventory balance of approximately USD 432.1 million as of September 30, 2011 compared to USD 453.6 million as of December 31, 2010. As of September 30, 2011, the Company had total liabilities of approximately USD 2.8 billion.