- Published on Tuesday, 01 September 2009 16:09
CHINA - One of China’s biggest makers of injection molding machines, Haitian International Holdings Ltd, says its sales have rebounded to pre-crisis levels, after hitting rock bottom in the first half of 2009.
The Ningbo, Zhejiang province-based company disclosed in its earnings report to the Hong Kong Stock Exchange that although it could not say whether the economic downturn is over, there are signs of recovery in their order books in Q2 2009, and predict the upward trend will continue.
The company’s sales of its small tonnage machines stabilized in H1 2009. Orders for its large tonnage presses are also gradually returning, after a 50% decline in orders in H2 2008.
While remaining profitable in H1 2009 at US$16.15 million (CNY110.3 million), Haitian said that it was at dramatically reduced levels from 2008. H1 2009 sales dropped 16% to US$200.628 million (CNY1.37 billion), in comparison to H2 2008.
Haitian’s export sales fell 50%, but domestic sales increased 10% in H1 2009 over H2 2008; sales for the second quarter were also much stronger than the first quarter, ending with overall July sales returning to the same levels of July 2008 before the global financial crisis hit.
Haitian executive vice president Helmar Franz said, “We see some recovery in different fields, in different regions, especially in China, but still it is a tough environment.
“Sustainability, this is very difficult to say,” he commented on the country’s economic growth. “But from the best of my knowledge, people are working again, the automotive business is good, the information technology business is still good. Packaging and medical… are good.
“There is a big recovery. The export market still did not rebound, so I am pretty conservative about what will happen in America and Europe.”
Franz expressed confidence in his company’s performance for the rest of the year. “Based on the steady increase in order intake in recent months, it is likely that our sales performance and profitability will be further improved in the remainder of 2009 if there is no major economic shock emerging.”
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