China-based designer of precious metal jewelry Fuqi International Inc. affirmed its 2nd quarter and full year profit guidance and said that decrease of demand related to last month’s earthquake in China will not affect its sales in the long term.
Fuqi International, which is operating through its BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), and China-based wholly owned subsidiary, Shenzhen Fuqi Jewelry Co., Ltd. (Fuqi China), is expecting to earn US$0.2-0.21 per share for the quarter, and between US$0.98 and US$1.04 per share for the year.
Wholesale demand for company’s products has slowed in Sichuan province, which received worst damages from the earthquake which happened on May 12. The region represents 5% of its wholesale jewelry sales. However, the company said it does not expect any long-term slowdown in sales from this region.
Having published its preliminary financial results for the first quarter, the company gave raised financial forecast for the fiscal year 2008, with total wholesale revenue expected at the level of approximately US$290-$300 mln. Now the BVI company said it still expects wholesale revenue between US$62 mln and US$64 mln for the second quarter, and US$305 mln for the year period.