Over the last two weeks, all news about the Chinese construction sector has been marked with ambiguity. On one hand, Caterpillar's (CAT) CEO Doug Oberhelman was reported saying that his recent visit to China revealed a positive "attitude change" among CAT's customers. On the other hand, CAT's largest competitor in China, Sany Heavy Industry Co, reported a 59% decline in profits and attributed it to slow economic growth in the region.
Competitor's Point of View
Sany
China's largest machinery manufacturing firm according to market cap reported a 59 percent YoY decline in profits and an 18 percent decline in revenues. Net income declined from 1.73 billion Yuan to 714 million Yuan. Revenues fell from 10.85 billion Yuan to 8.9 billion Yuan. The company was wary of the decelerating economic growth in the region. Another sign of the economic slowdown was the fact that accounts receivable jumped up by 83 percent YoY to 20 billion Yuan. The company's excavator sales, its second biggest revenue contributor, plummeted by 27 percent.
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