Liugong, road machinery--Liugong Machinery Forecasts 30% Growth In 2011-2012

November 24 -- Guangxi Liugong Machinery (000528) forecasts its sales income to grow 30 percent in 2011 and 2012, reports China Securities Journal, citing company president Zeng Guang’an. Zeng estimates Liugong’s 2012 sales income will total 15 billion yuan in 2010 and hit 26 billion yuan in 2012.

Liugong’s own plans for the 12th Five-Year Period is to earn sales income of 50 billion yuan in 2015 and 100 billion yuan in 2020, of which 70 percent will be contributed by sales of loaders, excavators and cranes. Loaders currently contribute to 60 percent of the company’s annual sales income.

A product manager said loaders sales will exceed 10 billion yuan in 2010 while cranes sales are up 60 percent year-on-year to more than 800 million yuan. The manager added that Liugong’s excavator sales grew 100 percent year-on-year in the first half of 2010.

Liugong machinery on display at an expo in Vietnam 

Lan Xianyang, assistant to the president, said the company sold 20,000 units of road machinery in 2010 thanks to four trillion yuan in domestic investment and the recovery of the global economy.

Company vice president Yu Chuanfang said loaders may realize 50-percent growth in overseas sales in 2011 due to improvement in Western markets.

At present, 70 percent of Liugong’s annual sales come from domestic market while 30 percent from overseas.

Source: Capital Vue