2.2010 years due to rising prices of raw materials prices and the price of the upstream vendors for extrusion, fiber prices are expected from the current 78 yuan / km down to 72 yuan core / core-km, gross margin to decline;
The company added that grossmargin for the December 2011 quarter will decline about 9 points sequentially, due to the lower revenue, lower factory utilization, and inventory reserves.
Net earnings from operations are expected todecline approximately 15 percent- 20 percent in the first quarter due togrossmargin pressure and higher marketing-related costs, to be followed by earnings growth in all subsequent quarters.