Sutor Technology Group's fiscal 1Q plunges

NEW YORK

China-based Sutor Technology Group Ltd. said Friday its fiscal first-quarter net income plunged sharply as lower selling prices slashed profit margins.

For the three months ended Sept. 30, net income dropped 95 percent to $500,676, or 1 cent per share, compared with $10.9 million, or 29 cents per share, in the year-earlier period.

Revenue fell 4.8 percent to $123.8 million from $130.1 million.

The decreased margins reflect the steel products maker's "strategic decision to reduce the per unit sale price to retain market share and attract new customers, as well as a larger proportion of smaller orders, we received in the first fiscal quarter 2010, which generally had higher costs as compared to that of large orders," Sutor said in a statement.

In afternoon trading, the stock fell 27 cents, or 8.9 percent, to $2.77.