Chinese construction equipment and crane manufacturer Zoomlion Heavy Industry posted RMB 20,753 million (about U.S. $3.2 billion), compared to RMB 25,851 million in 2014, a 19.7-percent decline. Gross profit decline 22 percent from RMB 7,209 million in 2014 to RMB 5,607 million in 2014, while profit before taxation skidded from RMB 863 million in 2014 to RMB 39 million in 2015.
Zoomlion has made headlines in recent weeks for its efforts to acquire Westport, Conn.-based Terex Corp. The Chinese firm has offered $3.4 billion, $31 per share, for Terex, which last week asked Zoomlion for a binding proposal.
“The decrease of revenue was mainly due to the weak market demand for concrete machinery and crane machinery,” the company said.
Net income decreased 85 percent to RMB 90 million, its lowest figure since 2000 when in reported RMB 54 million in net income. It was the company’s fourth consecutive year of declines in profit.
In general, Chinese construction equipment manufacturers are facing a glut of unsold equipment after an unprecedented construction boom. Zoomlion is hoping its potential acquisition of Terex would bring it access to markets in the United States and Europe. Zoomlion chairman Zhan Chunxin has stated he hoped to expand the company’s global footprint through acquisitions.
