Sany excavator sales have been hit hard
Sany’s 59% sales slump heads bad news coming out of China.
Sales of equipment from both Chinese and foreign manufacturers in China fell 36% in the first eight months of 2012, according to the China Construction Machinery Association.
The disappointing data has also been matched by the news that two of its biggest manufacturers have been hit hard by the slow-down in government spending in the country.
Newspaper China Daily reported that Sany equipment manufacturer saw its profits slump $113 million in Q3, taking its total profit for t year to date to $900 million. This represent s a 23.5% fall year-on-year.
XCMG’s saw an even greater decline of 30% year on year, registering a net profit of $50 million.
The slump in sales has been precipitated by tighter government controls with the larger companies turning to foreign markets to maintain momentum and shed the over capacity in their factories.
Many manufacturers will be hoping that a change at the top of the Chinese government executive will precipitate a new round of spending to catch on previous public spending plans.
The president of Sany, Xiang Wenbo told Reuters that he predicts growth to return in H2 2013. He said he expected that development in China was on a the brink of a “golden age” .