Machinery Maker Sees Strong Rebound Amid Construction Boom
What’s New: Heavy machinery makers in China are experiencing a strong business rebound since the second quarter, reflecting recovery by the world’s No. 2 economy and a construction boom fueled by policies to contain fallout from the coronavirus pandemic.
Zoomlion Heavy Industry Science and Technology Co. Ltd., China’s largest construction machinery manufacturer, said Wednesday it expects to report that first-half net profit increased by as much as 63% thanks to rising demand for its equipment.
In the first six months the company earned between 3.8 billion yuan and 4.2 billion yuan ($542 million – $599 million), Zoomlion said. Analysts said other leading machinery makers, including Sany Heavy Industry Co. Ltd. and XCMG Construction Machinery Co. Ltd., are also expected to report strong first-half results, although the companies have yet to release financials.
Background: Machinery makers’ business revved up following the economic reopening and policy support to stimulate infrastructure investment and economic growth. From April to June, combined sales of 25 major excavator makers rose by more than 60% each month, according to the China Construction Machinery Association.
Rising demand in the second quarter offset drops in the previous quarter amid the pandemic lockdown. In the first quarter, Zoomlion’s revenue grew 0.55% from a year ago, while rivals Sany and XCMG both booked dramatic declines.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
Contact reporter Han Wei (email@example.com) and editor Bob Simison (firstname.lastname@example.org)
- MOST POPULAR