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China Daily Website

Sany, Zoomlion both report slide in Q3

Updated: 2013-10-31 17:34
By Yao Jing ( chinadaily.com.cn)

China's construction machinery industry seems to be faced with a lackluster recovery as the country's two major makers, Sany Heavy Industry Co Ltd and Zoomlion Heavy Industry Science and Technology Co Ltd, both reported a slide in Q3 on Wednesday.

Zoomlion's net profit was 889 million yuan ($145.97 million) from June to September, down from 1.34 billion yuan a year earlier, according to a filing from the company on the Shenzhen Stock Exchange on Wednesday.

For the first nine months, net profit was down by almost half to 3.8 billion yuan from nearly 7 billion yuan in the same period last year.

As for Zoomlion's local rival, Sany's net profit dropped to 326.4 million yuan in Q3, compared with 714.2 million yuan a year earlier, according to its filing with the Shanghai Stock Exchange on Wednesday.

From January to September, Sany said net profit declined 49.3 percent to 2.98 billion yuan from 5.87 billion yuan in the same period last year.

Both companies have shifted to emerging markets for growth as they struggle with fierce competition in the world's largest construction machinery market, caused by weak domestic sales and excess capacity.

 
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