First Tractor
H share First Tractor, the mainland's largest agricultural tractor-maker, yesterday said sales fell in the first half but that it was looking to an improved final quarter.
Chairman Yin Jiaxi said the fall was attributed to unstable staple food prices in the first half and the delayed implementation of agricultural policy that would help stimulate buying.
Last year, growth in the tractor market slowed, showing an increase of only 1.6 per cent over 1996.
Mr Yin said if staple food prices continued their recent rises and with the agricultural policy due to come on stream by the end of the year, tractor demand should pick up.
While there were concerns that the recent flooding along the Yangtze River would reduce farmers' income and hurt sales, Mr Yin said the company should not be affected as its main market was in the north.
He said the flooding was a mixed blessing because the company expected to sell bulldozers to be used for more water containment work.
The company was still studying opportunities to buy big-tractor makers rather than producers of small-sized tractors which had an uncertain earnings outlook.
It had plenty of cash and was under no pressure to raise capital, Mr Yin said.
