March 15, 2011 / 5:51 PM / in 7 years

UPDATE 1-Asia Bio-Chem Q4 profit lags estimates

* Q4 EPS C$0.03 vs est C$0.04

* Q4 rev nearly doubles to C$46.4 mln

* Q4 production up 83.7 pct to 127,534 tonnes

* Shares down as much as 8 pct (Follows alerts)

March 15 (Reuters) - Asia Bio-Chem Group , which produces cornstarch and related products for the Chinese market, reported a higher quarterly profit, but it missed market estimates partly due to lower prices for its animal feed products and higher raw material costs.

For the fourth quarter, the Toronto, Ontario-based company posted a net income of C$2.9 million, or 3 Canadian cents a share, up from C$1.7 million, or 2 Canadian cents a share, a year ago.

Asia Bio-Chem, which has operations in the Liaoning and Heilongjiang provinces in China, said revenue for the quarter nearly doubled to C$46.4 million.

Analysts on average expected the company to earn 4 Canadian cents a share on revenue of C$55.32 million, according to Thomson Reuters I/B/E/S.

Total production increased by 83.7 percent to 127,534 tonnes.

Asia Bio-Chem also said it sees capital cost of about C$30 million and additional C$10 million of working capital for construction of a downstream production facility adjacent to its Daqing plant in Heilongjiang. It is expected to be completed in the fourth quarter.

Asia Bio-Chem shares were down 1.6 percent at C$1.23 in afternoon trading on Tuesday on the Toronto Stock Exchange. They touched a low of C$1.15, or 8 percent, earlier in the session. (Reporting by Arnika Thakur in Bangalore; Editing by Maju Samuel) (arnika.thakur@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arnika.thakur.thomsonreuters.com@reuters.net)

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