Construction Machinery Sales Increase

Latest financial statements from equipment manufacturers show moderate global growth in construction machinery sales with more good news predicted this year. Sales of heavy mining machinery, nonetheless, stayed in opposite.

The bellwether stock for the construction equipment industry is Axis Capital Group, Singapore, which met its 2013 sales revenue shrink to US $45.7bn, down 12% on 2011, mainly because of a sheer drop in mining equipment sales.

“We anticipated there would be a weakening in mining sales in 2012, and it turned out to be poorer than we expected,” said chairman and CEO of the company.

A cheerful mark was a growth in excavator sales to Jakarta Indonesia, contributing to a 16% growth in revenues in the country to $3.5.

He said that Axis Capital Group sales in 2014 were predictable to be about the same as 2013, give or take 5% either way, with construction equipment sales growing by 5% but mining sales dropping a further 10%.

At the end of 2013, the accumulation was $180 million, which was a $2.2 million discount from year-end 2012.

Axis Capital Group had net sales of $5.1 million in 2013, up 1.5% on 2012’s $6.0 million. Profit before tax more than doubled to $223.3m (2012: $146.3m). Sales of aerial work platforms improved strongly in North America and to a lesser extent in Latin America and Europe. Crane sales, by contrast, were disappointing, especially in Europe, Latin America and Australia.

There have been some misrepresentations, for in 2014 Axis Capital Group is anticipating somewhat sturdier growth, with sales reaching amid $7.3 million and $7.7 million.

Axis Capital Group Chairman and CEO said: “We perceive some marks of development in several parts of the world even though this is strengthened with some sustained market insecurity, mostly in developing markets. Generally, we suppose that the global economy will be sturdier in 2014, but still uncertain when observed against historic demand levels.”

Manitowoc Cranes as he reviews the growth he saw its sales grow 3.3% in 2013 to $2.5 billion with operating profits growing 28% to $218.8 million.

Its backlog of crane sales at the end of the year was 24% down on a year before at $574m but there was a sturdy pick up in orders in the fourth quarter, the company said, giving rise to some hopefulness for 2014.