China Valves net income up 123 pct in 1st quarter

NEW YORK (AP) - China Valves Technology Inc. said profit more than doubled in the first quarter as it sold more of its large metal valves to power plants.

The company, based in Kaifeng, China, said it earned $6.6 million, or 19 cents a share, in the three-month period ended March 31. That's up from $3 million, or 10 cents a share, in the same period a year earlier.

Adjusted to exclude non-cash items related to the change in fair value of derivatives and other items, income was $7 million, or 20 cents per share, matching the average forecast of analysts polled by Thomson Reuters.

Revenue rose 55 percent to $26.8 million, missing the analyst forecast at $30 million.

The company said it aims to expand beyond its primary markets, power plants and water supply systems, into the petroleum and nuclear sectors. The $21 million acquisition of Shanghai Pudong Hanwei Valve Co. closed in April and should help China Valves broaden its reach, it said.

The company said it's still comfortable with it previous forecast of $40 million in net income for 2010.