China Yuchai International Shares Plunged: What You Need to Know
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What: Shares of diesel and natural gas engine maker China Yuchai International (NYS: CYD) stalled today, down by 13% at the low, after the company reported earnings results this morning below market expectations.
So what: Revenue for the third quarter filled up to $542.6 million, while the bottom line it spit out came in at $0.27 per share. Both figures were shy of the consensus estimates of $550.4 million in sales and $0.33 per share in profit.
Now what: Gross margin also fell from 23.1% last year to 20% for the quarter, while the total number of diesel engine units moved declined from roughly 109,000 last year to approximately 106,000. The company has been relying on debt to finance operations recently as costs have risen. China Yuchai president Benny Goh attributed the "challenging" quarter to a construction slowdown and the Chinese government's credit-tightening measures aimed at battling inflation.
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