Equipment manufacturer 236 Hyundai Heavy Industries has published optimistic results in the financial report for its construction equipment operations. The firm’s Annual Report 2013 said that the global construction market slowed in 2013 as economic uncertainty in the US and Europe continued and China maintained its tight credit policies to keep growth in check. In emerging markets such as the Middle East, Brazil, Russia, and Africa, falling international raw materials prices combined with a market slump in the second half of the year and political and policy obstacles dampened demand. However, the second half of the year brought a gradual recovery in the US. According to Hyundai while government policies and tight credit delayed recovery in China’s construction market, concerns of an economic hard landing eased as the market remained stable. In Brazil, demand for equipment fell as the global economic slowdown impacted major development and private sector projects.
In 2013, HHI’s new orders reached US$2.5 billion. The firm said that this was a decrease of around 11% from 2012 and was primarily due to stagnant growth in the global market, a steep drop in China, and increasing competition from Japanese makers, which benefited from the weak Yen. But despite this increased competition, HHI says it was able to boost its market share by reducing costs and strengthening its sales organisation. Hyundai’s excavator business continued to lead its market segment in 10 countries across the Middle East, Africa, and CIS.
The firm is optimistic for 2014 and believes that the global construction market will be positive. In China, market growth is expected to be stable as government policy continues to keep a rein on economic growth. In the US, uncertainty continues to linger in the wake of budget sequestration and the government shutdown in 2013.
In emerging markets, HHI says that a gradual recovery is expected in the second half. In Brazil, public tender purchases focusing primarily on small-sized equipment are expected to increase as part of economic stimulus measures as expectations of market recovery rise in the lead-up to the 2016 Rio1558 Olympic Games over the next two years. In Europe, the on-going financial challenges that nations in southern Europe face make it unlikely that the equipment market will recover in the near future.
HHI’s global new order target for 2014 is $2.8 billion as the company continue to strengthen its global sales network and enhance service and support in pursuit of greater market share. The start-up of joint venture engine maker Hyundai196 Cummins Engine Co in Daegu, Korea in May 2014 will provide HHI with a stable supply of high-quality engines and service capabilities that will further enhance customer satisfaction. At present excavators account for some 55% of the firm’s business while wheeled loaders account for 11%.
More generally, Hyundai say it will continue to invest in its products, develop specialised equipment for key markets, and deliver superior customer service to improve our competitiveness. HHI believe that developing next-generation equipment that brings together the latest advances in information technology to enhance efficiency and security and eco-friendly technology to meet the high environmental standards set in Europe and North America is key to meeting the changing needs of global customers and unlocking opportunities for growth worldwide in the years ahead.
In 2013, HHI’s new orders reached US$2.5 billion. The firm said that this was a decrease of around 11% from 2012 and was primarily due to stagnant growth in the global market, a steep drop in China, and increasing competition from Japanese makers, which benefited from the weak Yen. But despite this increased competition, HHI says it was able to boost its market share by reducing costs and strengthening its sales organisation. Hyundai’s excavator business continued to lead its market segment in 10 countries across the Middle East, Africa, and CIS.
The firm is optimistic for 2014 and believes that the global construction market will be positive. In China, market growth is expected to be stable as government policy continues to keep a rein on economic growth. In the US, uncertainty continues to linger in the wake of budget sequestration and the government shutdown in 2013.
In emerging markets, HHI says that a gradual recovery is expected in the second half. In Brazil, public tender purchases focusing primarily on small-sized equipment are expected to increase as part of economic stimulus measures as expectations of market recovery rise in the lead-up to the 2016 Rio
HHI’s global new order target for 2014 is $2.8 billion as the company continue to strengthen its global sales network and enhance service and support in pursuit of greater market share. The start-up of joint venture engine maker Hyundai
More generally, Hyundai say it will continue to invest in its products, develop specialised equipment for key markets, and deliver superior customer service to improve our competitiveness. HHI believe that developing next-generation equipment that brings together the latest advances in information technology to enhance efficiency and security and eco-friendly technology to meet the high environmental standards set in Europe and North America is key to meeting the changing needs of global customers and unlocking opportunities for growth worldwide in the years ahead.
