China Automotive Systems, Inc. ( CAAS ) reported first-quarter earnings per share of 27 cents, up from 23 cents year over year.

Net sales were $139.4 million, down 2% year over year. Net sales of traditional steering products and parts were $92 million, down from $94.4 million year over year, while those from electric power steering products and parts were $47.4 million, almost flat.

Gross profit increased by 11.6% to $24.1 million. Gross margin expanded to 17.3% from 15.2% in the year-ago period.

Income from operations increased by 26.0% to $9.7 million in the quarter under review.

Cash and equivalents, and short-term investments were $135.8 million as of March-end.

International sales were mixed as sales in Brazil continued its growth trend with a 17.6% year-over-year sales rise. However, North American sales were down by 12.4% year-over-year, mainly due to temporary lower product sales to Stellantis N.V. ( STLA ) .

“We continued to invest in our products as research and development (“R&D”) expenses remained stable,” said Qizhou Wu, chief executive officer of the company. 

Outlook: The company has reiterated revenue guidance for the full fiscal year 2024 of $605.0 million versus the $593.11 million estimate.

Price Action: CAAS shares are trading higher by 0.01% to $3.4303 at last check Tuesday.