China'S Machinery Industry Profits Will Fall To 20%.

According to the China Industrial daily, in April 21st, Zhu Shen Di, vice president of China Machinery Industry Federation (hereinafter referred to as China machine union), said that the profit growth of China's machinery industry will fall to 20% in 2008.

From 1 to November 2007, the industry had a 47.79% profit growth rate.

In April 25th, an industry analysis report provided by China Unicom to the finance and economics reporter showed that China's machinery industry enterprises achieved a profit of 58 billion 127 million yuan from 1 to February, an increase of 36.86% over the same period last year, a decrease of 16.41% over the same period in 2007 (53.27%), 10.93% lower than that in 2007 1 to November (47.79%).

At the analysis meeting a few days ago, the relevant experts believe that the profit data for the two months may be just a representation.

Cai Weici, executive chairman of the aircraft alliance, believes that the raw materials used by some enterprises are still bought at low prices in 2007. The pressure of rising costs is not fully reflected. Some listed companies make profits through capital market and distort the main business profits.

The analysis shows that the whole industry production is still running at high level from 1 to February, except for cultural and office equipment sub sectors, and other sub sectors have two digit growth.

The construction machinery sub industry grew by 38.63%, and petrochemical, heavy mines, machine tools, machinery foundation parts, food packaging machinery and so on, all exceeded 30%.

But the growth rate of key indicators was lower than that of the same period in 2007.

Among them, the total industrial output value of 11427 billion yuan, an increase of 26.15% over the same period, the growth rate dropped 7.17%.

Sales output value of 11084 billion yuan, an increase of 27.79% over the same period, the growth rate dropped 4.96%.

After several years of rapid growth in power generation equipment, the first negative growth occurred from 1 to February.

The output of auto sub industry reached 1 million 515 thousand from 1 to February, an increase of 12.46% over the same period last year, but the increase was 21.5% last year.

Among them, the total production of cars from 1 to February was 822 thousand and 100, an increase of 9.99%, much lower than that of 29.06% in the same period last year.

Due to the rising cost of raw materials and other reasons, the industry has expanded its deficit, and the number of deficit companies and losses has increased.

From 1 to February, there were 16184 loss making enterprises in 73100 mechanical industrial enterprises, an increase of 1071 compared with the same period last year.

The deficit was 10 billion 61 million yuan, up 15.36% over the same period last year.

Another noteworthy phenomenon is that the growth of import and export volume of machinery industry has declined, and the growth rate of import growth in recent years is faster than that of export growth.

Prior to that, the machinery industry has increased its export growth over the past three years over the import market by 20%.

From 1 to February, exports were US $34 billion 42 million, an increase of 25.96% over the same period last year, down 31.68% from the same period last year (57.64%), and imports of US $28 billion 125 million, an increase of 27.58% over the same period last year, a 8.31% increase over the same period last year (19.27%).

Import growth is higher than export growth by 1.62%.

According to the report, there are three reasons for the slowdown in export growth: one is the short-term factors such as Spring Festival and snow disaster; the two is the gradual conduction of the conduction effect of the US economic downturn; and the three is the comprehensive policy impact of the export tax rebate reduction.

The acceleration of import growth is due to the accelerating investment in fixed assets in China, as well as the relevant policies promulgated by the state to encourage the import of high-tech equipment.

Many industry insiders told the "finance and economics" reporter that the real profit situation of the machinery industry in 2008 will be clearer in June.

Machinery enterprises should speed up industrial upgrading and optimize the product mix in response to changes in the environment.