Gulf Resources, Inc. (OTCBB: GFRE) reported it was revising its expected 2008 income to between $20 million and $23 million. This positive change came after the company, a manufacturer of bromine, crude salt and specialty chemical products in China, announced about $23 million in new customer orders for the fourth quarter, up significantly over the third quarter of 2008.
GFRE pointed out that third quarter bromine orders from some of its customers were delayed as a result of the Olympic Games and related government restrictions on many chemical factories in Beijing and Qingdao.
“We are extremely pleased to see the surge in placed orders as a result of the revival of the chemical industry after the Olympic Games,” said Ming Yang, Gulf Resources CEO. “Robust demand for bromine and chemical products in China together with our rapidly expanding production capacity and increased production efficiency will allow us to continue capturing a larger share of the market for bromine and bromine-based chemicals.”
Placed 4Q orders show bromine products and additives for oil and gas exploration account for, respectively, $14.5 million and $5.5 million of the total. The company’s capacity utilization rate has returned to about 80 percent. The company expects revenues of between $84 million and $90 million for the year.
GFRE, through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Co. Ltd., and Shouguang Yuxin Chemical Industry Co., Ltd. has increased in-house sourcing activities to better use its bromine reserves in chemical production and is also developing more environmentally friendly products that command higher prices, Yang said.
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