LiuGong Continues Record-Setting Company Performance

LiuGong Third-Quarter Report Shows Continued Record-Setting Company Performance

Guangxi, PR China – December 10, 2010 After announcing record sales, profits and export volumes through the first half of 2010, LiuGong executives reported the company’s third-quarter earnings continue apace as the company posted total sales revenue of $1.75 billion, a 61% increase from the same period in 2009.

With only a slight slowing in the overall pace of earnings from the first two quarters, LiuGong continues to break benchmarks from years previous, reporting net profit of $189 million on total gross profits of $227 million. This represents a 122% increase from the same period last year. The company posted 29 cents in earnings per share, up from the 21 cents reported for the first six months of 2010.

Domestic sales volume rose to $1.63 billion a 62% increase from the same period in 2009, while overseas sales volume, the big growth segment for the company, was $125 million, a nearly 48% increase from the same period last year. LiuGong sold 1,502 machines overseas during the third quarter, and over 11,589 machines within the domestic market, for a total of 13,091 units. Total machines sold so far this year domestically and overseas were 39,434 and 3,722 respectively.

Company Vice-Chairman and President, Zeng Guang’an said LiuGong is on pace to have a record-setting year.

“For example, we have already sold nearly as many machines overseas by this third quarter as we sold for all of 2009,” Zeng noted. “Our strategies for growth and our continued work on Six Sigma quality is paying off for LiuGong and our investors.”

LiuGong reported it had set a sales record of $1.2 billion through June, a 63.5% increase from the same period last year, when the company posted $737 million in sales. Through the first six months of this year, LiuGong’s net profits were $137.8 million on $165 million in gross profits.

Top products for LiuGong sales in the third quarter were wheel loaders, excavators and forklifts and road building equipment such as rollers, motor graders and pavers, the company reported.

Publicly traded on the Shenzhen Stock Exchange, LiuGong is headquartered in Liuzhou, China. LiuGong Machinery Corporation has been building construction equipment in China for more than 50 years, now offering a range of heavy machinery through a dealer network spanning six continents.