Tongxin International (TXIC) continues nosedive with lowered forecast and executive changes

Posted on: Saturday, November 20th, 2010
Written by:
Sheryl

Tongxin International Ltd. (OTCBB: TXIC) a China-based manufacturer of engineered vehicle components for the automotive industry, continues its downward spiral, reaching a 52-week low of 1.68 Friday, plummeting over 81 percent year-to-date, after announcing lowered revenue guidance and executive management changes amid speculation of plans to go private.

Tongxin International, which specializes in the manufacture of engineered vehicle body structures (“EVBS”) and stamped parts for the commercial automotive industry, today announced revenue guidance for the fiscal year ended December 21, 2010 lowered by $50 million dollars, to a range of $100 million- $110 million. This lowered guidance can be contributed to an anticipated drop in orders from international customers in Vietnam, due to a decrease in market share due to in-house production of cabs. Additionally, the impact of the cessation of certain government sponsored stimulus programs throughout 2010, the slower than anticipated or delayed startup of two new models as wells as a drop in sales.

Additionally, Tongxin announced Rudy Wilson was removed as Chief Executive Officer of the Company, but will remain as a Director, and Jackie Chang was removed as Chief Financial Officer and Chief Accounting Officer of the Company.

In the newly vacated postition, William E. Zielke has been appointed Chief Executive Officer and Chief Administrative Officer of Tongxin International Ltd. ┬áIn connection with Mr. Zielke’s appointment, Mr. Zhang Duanxiang was appointed Chairman of the Company. Zielke, a Director of the Company, has been involved in the China automotive market for 14 years, with over 30 years automotive experience including an expatriate assignment in Europe, and serving on the boards of various corporations.

Lastly, Tongxin International addressed speculation that the Company plans to go private, stating there is no truth to such rumors.

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