Foreign heavy construction sales grew in the third quarter as demand for large equipment persisted, while demand for smaller equipment slid amid local construction tightening.
Mitsubishi Heavy Industries increased revenue for the first six months of fiscal 2024, ended Sept. 30, as large infrastructure projects like data centers bolstered key segments, according to the Nov. 5 earnings release.
According to the earnings report:
- Revenue increased to 2.3 trillion yen ($14.9 billion), up 11.1% year over year;
- Order intake rose to $21.9 billion, up 7.9% YoY;
- Order backlog jumped to $59.8 billion, up 26.2% YoY;
- Finance income plummeted to $40.2 million, down 84.5% YoY;
The growth of the data centers market presents opportunities for Mitsubishi Heavy Industries, especially in the North American market, Hisato Kozawa, executive vice president and chief financial officer of Mitsubishi Heavy Industries, said during the company’s Nov. 5 earnings call.
“Particularly in North America, power demand from data centers is increasing, and utility companies are working to expand power generation capacity,” he said. “Inquiries for these kinds of projects are progressing steadily.”
Sany Q3 revenue rises 19% YoY
Chinese construction equipment manufacturer Sany increased operating revenue and net profit in the third quarter, as demand for large construction equipment remained high, according to the Oct. 30 earnings release.
According to its earnings release:
- Operating revenue for Q3 was $2.69 billion, up 19.4% YoY;
- Net profit in Q3 reached $182 million, up 96.49% YoY;
- Operating income for the first nine months of the year increased 4.22% to $8.14 billion;
- Net profit in that period rose to $685 million, up 19.66% YoY; and
- Net cash flow grew 151.74% YoY to $1.74 billion.
Sany’s increase in net profit was attributed to an increase in sales revenue and a decline in expense rate, according to the release. Meanwhile, net cash improved due to “higher operating profit, lower purchase costs and improved net returns from subsidiaries, including SANY Auto Finance and SANY Financial Leasing,” according to the release.
Bobcat sales slip
Doosan, the parent company of Doosan Bobcat or Bobcat, experienced a decline in sales, operating profit and net income in Q3, according to the company’s Oct. 31 earnings presentation.
According to the presentation:
- Sales totaled $1.3 billion, down 24.9% YoY;
- Operating profits declined to $90 million, down 57.8% YoY; and
- Net income was $46 million, down 66% YoY.
Bobcat’s sales decreased due to uncertainties over interest rates and the U.S. presidential election, as well as dealer inventory adjustments, according to the earnings presentation. Meanwhile, U.S. construction spending also dipped because of higher interest rates and election uncertainties.
Editor’s note: All amounts have been converted to U.S. dollars.
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