Sorl Auto Parts triples 1Q profit on sales surge

China's Sorl Auto Parts more than tripled its first-quarter net income as demand for trucks in China surged.

China's auto market blew past the United States last year to become No. 1 in the world.

The burgeoning middle class and a rapidly rebounding economy means that most major automakers turned most of their global profits in China, and that has trickled down to companies like Sorl, which makes air brake systems and other components.

Sorl posted net income of $3.2 million, or 17 cents per share, for the first three months of the year. In the year-ago period, the company earned $945,000 or 5 cents a share.

Sorl's revenue spiked 68 percent to $34.1 million.

Profit and revenue edged out most Wall Street expectations.

CEO Xiaoping Zhang said that an expansion into interior mainland China caused "surging demand" for trucks in the quarter.

Zhang said government emission control measures mean new products that have higher margins, which also improved performance.

The company expects second quarter net revenue of $47 million and net income of $4.3 million, compared to net revenue of $29.7 million and net income of $3 million for the same quarter last year.

Analysts expect net revenue of only $43.4 million on net income of $4.12 million for the quarter ending in June.

Still, shares of China's Sorl Auto Parts Inc. fell 43 cents, or 4 percent, to $9.68 Friday amid a broader sell-off on Wall Street.