UPDATE 2-AutoChina raises FY rev view in strong China truck mkt

* Q2 EPS $0.54 vs $0.38 year-ago

* Q2 rev more than trebles to $201.5 mln

* Raises 2010 rev view $600-$650 mln from $550-$600 mln

* Shares jump 10 pct; Nasdaq off 1.8 pct (Recasts; adds
conference call details, analyst comments)

By Megha Mandavia

BANGALORE, Aug 19 (BestGrowthStock) – AutoChina International Ltd
(AUTC.O: ), which sells and leases commercial vehicles in China,
raised its full-year revenue outlook after posting higher
quarterly profit amid strong demand for heavy trucks.

Heavy truck sales in China more than doubled to 383,000
units in January-April from the year-earlier period, the
company said.

AutoChina, which caters mainly to goods carriers in China,
expects to lease 12,000-13,000 trucks this year, up from its
previous forecast for at least 12,000.

“Estimating the remainder of 2010 and 2011 … we have
noted that sales in our market remain robust,” Chief Financial
Officer Jason Wang said on a conference call.

Beijing’s huge economic stimulus program has propped up
growth in infrastructure and construction activity, said
Chardan Capital Markets analyst Jay Srivatsa.

“When you have residential, fertilizer, agriculture
equipment to be moved, it comes down to the big trucks to do
it,” Srivatsa said. “That plays into the strength of what
AutoChina does.”

Global truck giants Daimler AG (DAIGn.DE: ) and MAN (MANG.DE: )
are increasingly turning to China to power growth given the
demand there for heavy vehicles to support the building boom.

AutoChina, founded by Yong Hui Li in the mid-1990s, is
expanding in China and aims to serve all of country’s provinces
by end-2013. It said it grew significantly in Southern China
during the second quarter.


The company increased its full-year revenue forecast to
$600-$650 million from a previous view of $550-$600 million.

For the second quarter, AutoChina earned $10.9 million, or
54 cents a share, up from $3.8 million, or 38 cents a share.

Revenue more than trebled to $201.5 million, and the number
of truck leases nearly trebled to 4,130.

Two analysts on average had expected earnings of 56 cents a
share, on revenue of $181.1 million, according to Thomson
Reuters I/B/E/S.

Shares of the Shijiazhuang-based company, valued at more
than $510 million, have fallen 44 percent since a life high in
March. The stock rose as much as 10 percent in morning trade
Thursday on Nasdaq, and later traded 6 percent higher. The
shares have more than trebled in the past year.
(Reporting by Megha Mandavia in Bangalore; Editing by
Gopakumar Warrier)

UPDATE 2-AutoChina raises FY rev view in strong China truck mkt