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Komatsu feels pinch in China

Komatsu, Cat’s most feared/despised/grudgingly respected international rival, notes that things do not look good in China next year, where demand for new equipment has cratered. Bloomberg reports:

Komatsu Ltd., the world’s second- biggest maker of earthmovers, may not benefit from China’s $585 billion stimulus package this fiscal year as much as the company previously expected, Executive Officer Kunio Noji said.

The spending plan may not be implemented quickly enough to offset a steep slide in the Chinese market in time for the period between February and April, a peak season for demand that typically accounts for about 30 percent of annual sales, Chief Executive Officer Noji, 62, said in a Dec. 19 interview.

Industrywide sales in China are likely to have fallen between 30 and 50 percent this month from a year earlier after a 50 percent drop in November and 30 percent decline in October, he said.

I’d be wishful thinking to imagine what’s bad for your enemies is automatically good for you.

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Tom Mangan posted at 8:17 am December 22nd, 2008 |

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