Fushi Copperweld (FSIN) 8-K Results of Operations and Financial Condition

Fushi Copperweld Corrects Administrative Errors in Financial Tables

BEIJING, November 7, 2011 /PRNewswire-Asia-FirstCall/ — Fushi Copperweld, Inc. (Nasdaq: FSIN), the leading global manufacturer and innovator of copper-clad bimetallic wire used in a variety of telecommunication, utility, transportation and other electrical applications, today issued new financial tables that correct certain administrative errors in the tables released with the Company’s earnings announcement for the third quarter of 2011 issued on November 3, 2011.

For the 2011 third quarter and nine-month periods, all financial figures are correct.  However, there are errors which primarily relate to the labeling of certain line items in the Company’s balance sheet and income statement, which were included in the November 3, 2011 earnings release.   For the 2010 prior-year periods, there are also corrections to certain financial figures in the financial statement tables, which are set forth below:

- Diluted earnings per share for the 2010 nine-month period was $0.93, not $0.94; and

- End of period cash as of September 30, 2010 was $117.9 million, not $73.8 million as listed on November 3, 2011

- Gain on cross-currency interest swap derivative for the 2010 nine-month period was $128,861, not a loss of $753,666 as listed on November 3, 2011.  The difference reflects the exclusion of a change in derivative liability – conversion option of $882,527, which was included incorrectly.

The financial statements as filed in the Company’s 8-K filing on November 4, 2011 are accurate and do not need correction.

The corrected tables are attached to this release.

About Fushi Copperweld

Fushi Copperweld Inc., through its wholly owned subsidiaries, Fushi International (Dalian) Bimetallic Cable Co. Ltd., and Copperweld Bimetallics LLC, is the leading manufacturer and innovator of copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications. With extensive design and production capabilities, and a long-standing dedication to customer service, Fushi Copperweld is the preferred choice for bimetallic products worldwide.

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “will” “believes”, “expects” or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.

For more information, please contact:

Investors

Jolin Qiao/Investor Relations Officer - Fushi Copperweld Inc

Phone +1.931.433.0482 - E-mail: IR@fushicopperweld.com

Web: www.fushicopperweld.com

- Tables Follow -

	September 30,		December 31,
	2011		2010
	USD		USD
ASSETS
Current assets:
Cash		163,624,276		123,000,338
Accounts receivable, net of allowance for doubtful accounts		73,913,870		65,765,722
Inventories		18,899,317		16,143,922
Advances to suppliers		8,586,217		15,022,976
Prepaid expenses and other current assets		1,042,982		743,206
Total current assets		266,066,662		220,676,164
Property, plant and equipment, net		119,064,234		124,177,512
Intangible assets, net		468,518		577,587
Land use rights, net		13,246,167		13,089,733
Deposits for land use rights		9,957,883		9,623,181
Goodwill		1,788,231		1,669,789
Other non-current assets		518,477		443,397
Total assets		411,110,172		370,257,363
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term bank loan		650,000		650,000
Accounts payable		5,361,105		3,241,428
Accrued expenses and other current liabilities		14,128,367		15,542,111
Total current liabilities		20,139,472		19,433,539
Long-term bank loan		5,200,000		5,687,500
Deferred income tax liabilities		673,470		669,540
Other non-current liabilities		-		65,057
Total liabilities		26,012,942		25,855,636
Shareholders’ equity:
Common stock, $0.006 par value, 100,000,000 shares authorized; 38,204,138 and 38,099,138 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively		229,226		228,596
Additional paid-in capital		169,028,404		167,596,792
Retained earnings		166,871,835		140,462,840
Accumulated other comprehensive income		48,967,765		36,113,499
Total shareholders’ equity		385,097,230		344,401,727
Commitments and contingencies		-		-
Total liabilities and shareholders’ equity		411,110,172		370,257,363

	Three-Month Period Ended September 30,						Nine-Month Period Ended September 30,
	2011			2010			2011			2010
	USD			USD			USD			USD
Revenues		74,279,340			66,507,433			219,158,766			195,062,641
Cost of revenues		54,353,890			46,842,955			161,047,950			137,986,750
Gross profit		19,925,450			19,664,478			58,110,816			57,075,891
Selling expenses		1,127,259			1,457,154			3,519,065			4,074,280
General and administrative expenses		5,061,337			3,117,062			15,035,656			10,923,878
Total operating expenses		6,188,596			4,574,216			18,554,721			14,998,158
Income from operations		13,736,854			15,090,262			39,556,095			42,077,733
Interest income		222,852			200,295			663,776			590,236
Interest expense		(116,378	)		(120,176	)		(340,282	)		(697,367	)
Gain on cross-currency interest swap derivative		-			-			-			128,861
Loss on extinguishment of HY notes		-			-			-			(2,395,778	)
Other expense, net		(757,407	)		(176,001	)		(1,677,122	)		(194,445	)
Total other expense, net		(650,933	)		(95,882	)		(1,353,628	)		(2,568,493	)
Income before income taxes		13,085,921			14,994,380			38,202,467			39,509,240
Income tax expense		4,137,255			2,072,009			11,793,472			5,197,187
Net income		8,948,666			12,922,371			26,408,995			34,312,053
Other comprehensive income:
Foreign currency translation adjustment, net of nil income taxes		5,322,885			4,433,165			12,854,266			6,198,740
Comprehensive income		14,271,551			17,355,536			39,263,261			40,510,793
Earnings per share:
Basic		0.23			0.34			0.69			0.94
Diluted		0.23			0.34			0.69			0.93

	Nine-Month Period Ended September 30,
	2011			2010
	USD			USD
Cash flows from operating activities:
Net cash provided by operating activities		40,676,212			23,215,333
Cash flows from investing activities:
Payment for acquisitions of Jinchuan and Hongtai		-			(6,375,000	)
Cash acquired from acquisitions of Jinchuan and Hongtai		-			901,442
Purchases of property and equipment		(1,160,718	)		(1,869,029	)
Net cash used in investing activities		(1,160,718	)		(7,342,587	)
Cash flows from financing activities:
Proceeds from interest-free loans provided by Mr. Li Fu		-			15,000,000
Payment for acquisition of  Jinchuan		(4,819,107	)		-
Repayment of revolving line of credit		-			(4,033,783	)
Proceeds from long-term bank loans		-			6,500,000
Repayment of long-term bank loans		(487,500	)		-
Repayment of notes payable		-			(35,600,000	)
Proceeds from issuance of common stock		-			59,800,050
Proceeds from exercise of warrants and stock options		628,495			1,207,824
Transaction costs paid in connection with issuance of common stock		-			(3,438,550	)
Net cash (used in) provided by financing activities		(4,678,112	)		39,435,541
Effect of foreign currency exchange rate changes on cash		5,786,556			1,960,862
Net increase in cash		40,623,938			57,269,149
Cash at beginning of period		123,000,338			60,597,849
Cash at end of period		163,624,276			117,866,998
Supplemental disclosure of cash flow information:
Interest paid		340,282			1,425,833
Income taxes paid		7,665,233			6,161,271
Non-cash investing and financing activities
Accrual for the acquisition of Jinchuan		-			4,819,107
Issuance of common stock in connection with the acquisition of Hongtai		-			2,600,000
Payable for purchase of property and equipment		554,538			314,294