Swedish compressor and machinery maker Atlas Copco expects its China sales to grow 30 percent annually in the next two to three years, the top executive said.
"India grew 50 percent in the last three years, China has grown just under 30 (percent). We will continue our present growth figures in China and India," chief executive Gunnar Brock said.
China sales -- which made up around 6 to 7 percent of total revenue last year -- would grow 30 percent per year in the next two to three years, Brock added.
Atlas Copco, which says it is the world's largest provider of industrial equipment, has benefited from demand from the manufacturing industry in recent quarters as well as a boom in the global mining industry, thanks to surging metals prices.
The company's share of the Chinese market was also boosted by its sheer presence in the country -- the fact that it has sales offices all over China -- and its focus on launching new products, the executive said.
Brock said it was likely the firm would sell its construction equipment rental business before the end of October, a process which Atlas Copco previously expected to run no longer than through the third quarter.
"We hope to finalise the deal before the release of the Q3 report," Brock said. Atlas Copco is scheduled to post its interim results on Oct. 24.
The firm announced late last year that it aimed to sell the North America-focused rental business, which analysts have valued between 25 billion and 30 billion crowns. But it would not be a "disaster" if the sale did not go through, Brock added.
The proceeds from the deal would probably mainly be used for share-buybacks and dividend payouts, he said.
Atlas Copco, which earlier this week announced the acquisition of a Chinese compressor firm, would continue to buy companies, but would focus on growth of organic sales.
"In the future you'll see some acquisitions, no doubt, but the major part (of our growth) will come from our own activities," Brock said.
The company recently reaffirmed its full year 2006 guidance of 8 percent revenue growth from 52.742 billion crowns in 2005, and an operating margin of 15 percent.
Source:佚名