Belimo Sees China Construction Sales Picking Up in Second Half
Belimo Holding AG (BEAN), a supplier of motors which control air-conditioning, says it sees recovering construction activity in China after a government lending cutback hampered investments in the first half.
Large construction projects have been re-started by the Chinese government, Beat Trutmann, chief financial officer of the Hinwil, Switzerland-based company said in an telephone interview today.
“You don’t know of the smaller orders, but you know about the bigger projects like infrastructure or airports,” he said.
Belimo’s outlook mirrors positive statements from ABB Ltd. (ABBN), which supplies low-voltage equipment like switches and circuit- breakers to China’s construction market. ABB CEO Joe Hogan said July 26 that he saw “some strengthening” in China’s construction market and he hoped it would extend into the second half.
Belimo’s first-half net income increased 12 percent to 29.6 million Swiss francs ($30.5 million), the company said in a statement yesterday. Sales grew 0.7 percent to 217.5 million francs, while three analysts estimated 228 million francs on average in a Bloomberg survey.
“It’s probably not possible to have a normal year this year which makes up for the first half,” Trutmann said of sales in Asia-Pacific. China makes up more than half of sales for the region. “But we expect an improvement,” he said.
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