Construction equipment giant says sector to see improvement in 2013
China’s economy has “bottomed out”, but there are still challenges ahead, and it’s too early to conclude when the situation will really improve, says Caterpillar Group president and chief financial officer Edward J. Rapp on Tuesday.
“There is no doubt that there are challenges, as well. We will be prepared for whatever challenges 2013 will bring”.
Caterpillar, the world’s leading construction machinery provider, is in the process of temporary business adjustment in the Chinese market, with expansion slowing down and investment suspended, he says.
“The Chinese economy has bottomed out,” Rapp says.
China’s economy, the world’s second-largest and the largest construction market, has lost steam since the second half of 2011, with the nation’s economic growth falling to 7.4 percent in the third quarter of this year: the slowest pace in more than three years.
But recent figures, including fixed-assets, retail, industrial profits and exports, showed the Chinese economy is heading toward a rebound.
For Caterpillar, there have been some positive signals in the market, “but it’s still too early to call when we will see a pick-up in the industry”, Rapp says.
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By Ding Qingfen in Shanghai
