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Engine Sales Flat For China Yuchai

Posted on May 13, 2013

China Yuchai International Ltd. (CYD), one of China’s largest manufacturers and distributors of diesel engines through its main operating subsidiary, Guangxi Yuchai Machinery Co. Ltd. (GYMCL), reported that its engine sales were essentially flat in the first quarter of this year.

GYMCL sold 130,744 units in the first quarter of 2013 compared with 131,697 units in the same quarter a year ago, representing a decrease of 953 units, or 0.7%. This reduction compares favorably, the company said, against the industry decline of 6.8% in sales of diesel-powered commercial vehicles in the first quarter of 2013, as reported by the China Association of Automobile Manufacturers.

"We regained revenue growth, outperformed the Chinese diesel engine market and further expanded our market leadership,” said Benny H. Goh, president of China Yuchai. “Industry data indicates that sales of diesel-powered commercial vehicles declined by 6.8% while our total unit sales remained steady year-over-year. Unit sales of our light-duty and heavy-duty engines rose in the first quarter of 2013 compared with a year ago. Our engine sales in the agriculture segment improved compared with sales in the first quarter last year. The increase in heavy-duty unit sales in the first quarter of 2013 reinforces our belief in the long-term potential of this market segment."

Net revenue was RMB 3.84 billion (US$ 613.1 million), a slight increase over the RMB 3.68 billion reported in the first quarter of 2012.  Net earnings RMB 173.5 million (US$ 27.7 million) compared with RMB 167.9 million.

Highlights included the sale of 298 units of its YC6J gas and electric hybrid engines to the Baoding Bus Co. in Hebei Province, China. The YC6J medium-duty National 5 and 5 compliant engine is primarily intended for use in public buses and coaches of between 8 and 11 m, the company said.

GYMCL said it will also launch 12 new engines this year, with seven National 5 compliant natural gas engines and the others National 4 compliant diesels.

"The Chinese government is increasing its focus on combating air pollution and the National 4 emission standards for diesel engines are targeted to be implemented throughout China on July 1, 2013,” said Goh. “Notwithstanding, we remain guarded over growth in 2013 due to the continuing weak and uncertain recovery in the global economy."