Breaking News: China Armco Metals, Inc. (OTCBB: CNAM) reports record financial results for the Second Quarter and first six months of 2009. The company, a distributor of imported metal ore with plans to launch a new state of the art scrap metal recycling facility in China, issued a press release this morning announcing record second quarter financial results for the quarter ended June 30, 2009. According to the release, financial highlights included:

Revenue for the second quarter ended June 30, 2009 increased by 71.2% to $22.5 million compared to revenue of $13.01 million in the second quarter ended June 30, 2008. The increase in revenue was mainly attributable to increased sales from its metals distribution business in China as demand for metal ore rose significantly. Net income for the second quarter of 2009 was $3.37 million compared to $1.85 million in the second quarter of 2008. This increase was attributable to an improving pricing environment in metal ore in China coupled with the positive effects of China's November 2008 economic stimulus package. On a diluted basis, earnings per share for the second quarter of 2009 were $0.33 on 10.1 million common shares outstanding compared to $0.24 in the second quarter of 2008 on 2.5 million fewer shares.

The press release goes on to state, the strong overall performance for the first six months of 2009 was largely driven by significant growth in our metals distribution business leading to record sales of $27.9 million for the first six months of 2009 compared to $22.79 million for the same period in 2008. Gross Profit for the first six months of 2009 was $4.63 million compared to $2.1 million for the first 6 months of 2008 period and net income was $3.5 million compared to $2.5 million which included a one-time gain of $1.2 million from a contract termination. On a diluted basis, earnings per share for the first six months of 2008 were $0.34 on 10.1 million common shares outstanding as compared to $0.38 in the same period in 2008 on 2.5 million fewer shares.

At June 30, 2009, total assets were $38.13 million, an increase of over 30% from the $28.82 million at December 31, 2008. At June 30, 2009 total current assets reached $25.52 million and working capital was approximately $6.15 million. Shareholder equity reached $18.76 million with 10.1 million common shares outstanding up from $15.29 million at December 31, 2009.

Commenting on the second quarter results, Mr.