Intense competition in the industry price war loader industry representation in some areas - loaders

Intense competition in the industry price war loader industry representation in some areas - loaders

Six months ago, "not the first price reduction" was Loader Enterprise sector reached a consensus. However, in raw materials prices, market conditions of increased competition, some enterprises are undercurrents sneak, "price war" phenomenon in the local area representation.

Public information, a listed company in east China Loader in 2008 just over 170 units sold, while sales in the first quarter of this year, sales reached more than 100, and its products concentrated in the 3-5 tons, are the mainstream products . Aside Sell Intensity factors, the price advantage of its market development contributed to the company than with the type of product LIUGONG (000,528, stock it) cost about 10%.

Prior to this, the industry researcher told reporters that this year Construction Machinery The sub-industry as a whole showed positive trend, but exceptions loader industry. Because of excessive competition in the industry, steel costs in the current trend of significant decline, the price cuts is the loader business performance this year, the biggest worry.

In the loader industry, the greatest impact on company performance is the gross margin changes, followed by sales. This relationship seems to change from Liugong performance graph of last year to get support.

As the first brand loader enterprises, Liugong Q4 last year, Loader sales, decreased by about 30%, but the main business revenue decreased by about 20% of the metamorphosis, Liugong 4th quarter of last year's main business Gross margin was 14.40%, higher than the first 3 quarters of the 14.16%, obviously, the company has gross margins through price increases to curb the downward trend. In the current steel price level, if the loader prices, the company are clear.

It is understood that construction machinery loader product is the more mature product, market competition fully. 2008 loader industry capacity over 200,000 units, while demand by 16.5 million units, more serious overcapacity, product gross margin as a whole showed a decline. Last year, in order to curb the decline in industry profitability, loader business opportunity to take advantage of rising raw material prices, have raised prices, and in this context, Liugong is in hand to discuss the price the industry enterprises to maintain order, and reached " no price cut "consensus.

Liugong in the acceptance of an interview with the Securities Times said that as the profitability of construction machinery in the lowest categories of products, loaders current market price already low, is not suitable for playing the "price war", but individual companies are ignoring the self-discipline rules, arbitrarily lowered prices accordingly. Industry Development show that the low-cost strategy will not only affect its own profits, but also affect the industry, technological content of products, thus affecting domestic product in the international market competitiveness. But the good news of this "price war" action not only in the local region.

The face of the company's price cuts, the industry researcher said that two months is a 3,4-season, if the industry does not appear within a wide range of price competition, the annual maintenance of products do not lower prices is very high.

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