November 10, 2010 / 4:07 PM / 8 years ago

UPDATE 1-Hanfeng Evergreen Q1 trails Wall Street; shares fall

* Q1 rev C$42.6 mln vs est C$83.7 mln

* Shares fall 12 percent

Nov 10 (Reuters) - Chemical fertilizer manufacturer Hanfeng Evergreen Inc HF.TO posted first-quarter results that missed estimates, hurt by lower production, sending its shares down as much as 12 percent on Wednesday.

For the first quarter ended Sept. 30, the company posted net income of C$2.4 million, or 4 Canadian cents per share, down from C$6.1 million, or 10 Canadian cents per share, a year ago.

Hanfeng, a manufacturer and seller of controlled-release fertilizers (SCR) to China, said sales were down 23 percent at C$42.6 million. About 30,000 metric tonnes of SCR produced for a new joint venture was not shipped during the quarter, which affected sales.

Actual production volume of SCR fell 22 percent to 26,105 tonnes. While Hanfeng sold 54,184 tonnes of CarbonPower coated urea product, a fall of 25 percent sequentially.

Analysts on average were expecting the company to earn 13 Canadian cents a share, on revenue of C$83.7 million, according to Thomson Reuters I/B/E/S.

“The first quarter is historically the slowest sales season and consequently annual maintenance shut downs are performed at all of the locations,” the company said.

Hanfeng Evergreen shares, which have gained 6.5 percent in value in the past one year, were trading down about 10 percent at C$5.90 Wednesday morning on the Toronto Stock Exchange. They touched a low of C$5.75 earlier. (Reporting by Arnika Thakur in Bangalore)

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