Chinese equipment manufacturer Zoomlion has begun a recovery from a recent downturn, the company said, despite a net loss for the first nine months of 2016, according to a Reuters report.
Zoomlion's stand at the Bauma show in Munich earlier this year.
Chinese equipment manufacturer Zoomlion has begun a recovery from a recent downturn, the company said, despite a net loss for the first nine months of 2016, according to a Reuters report. Zoomlion increased production after a $644 billion government stimulus package in 2008, but slowing economic growth has resulted in a stockpile of unsold inventory.
Zoomlion Heavy Industry Science and Technology said its net loss for the first nine months of 2016 is expected to be between 787 million yuan (about U.S. 118 million) and 812 million yuan, up from 518 million yuan for the first nine months of 2015. However, the company expects to post a net third quarter profit of between 25 million yuan (about U.S. $3.7 million) and 50 million yuan compared to a loss of 208.4 million yuan in the same period a year ago.
In a filing on the Hong Kong stock exchange, Zoomlion said results for the first nine months of the year were largely negative because of decreasing revenue from the construction machinery sector as well as foreign exchange fluctuations.
It is believed that the challenging environment Zoomlion faced this year played a major role in the company’s failed efforts to acquire U.S.-based manufacturer Terex.
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.
