China Railway Construction Seeks $36 Billion New Orders in 2008

China Railway Construction Corp. (1186), builder of more than half the nation's railroads, aims to secure 250 billion yuan ($36 billion) of orders this year in areas such as urban rail construction and hydropower projects.

Operating revenue for the year will reach 201 billion yuan, the Beijing-based company said in a statement to the Hong Kong stock exchange, without giving a year-earlier figure. The company won 287 billion yuan of contracts last year, according to its annual report.

China Railway Construction will hedge against exchange-rate fluctuations by increasing foreign-currency loans for investment in overseas projects, according to the statement issued as a supplement to its 2007 annual report. The company will also seek to settle contracts in foreign currencies.

Gross margins will widen because of improved cost management, the company said, without elaborating.

To contact the reporter on this story: Lee Spears in Beijing at lspears2@bloomberg.net.

To contact the editor responsible for this story: Teo Chian Wei at cwteo@bloomberg.net.

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