May 30, 2023: The Profits of China’s industrial firms declined in the foremost four months of 2023, official data showed, as companies struggled with margin pressures and soft demand amid a faltering economic recovery.
Profits fell 20.6% in January-April from a year earlier, compared with a 21.4% decline in the first three months, according to information from the National Bureau of Statistics (NBS).
In April alone, industrial firms posted an 18.2% drop in profit year-on-year, according to the NBS, which only occasionally gives monthly figures. Profits shrank 19.2% in March.
“Overall, today’s data shows that industrial enterprises, especially private and equity-owned enterprises, continue to be affected by a combination of unfavorable factors such as the base effect, short-term pressure on the economic recovery, and the downward trend of PPI (producer prices),” said Bruce Pang, chief economist at Jones Lang Lasalle.
Chinese companies need help with weak domestic and softening demand in the country’s major export markets. Producer deflation deepened in April, with the producer price index (PPI) falling at the fastest since May 2020.
Lenovo, the world’s largest PC maker, said this week that quarterly revenue and profit tanked in January-March, and it had cut 8% to 9% of its workforce to reduce costs as global demand for personal computers (PCs) continued to slump.
Producers of steel and other industrial metals are also hurting. Steel prices that reinforce bars used in construction hit the lowest level in three years this week; only a third of the country’s mills are operating at a profit, according to consultancy Mysteel.
“There is still some pressure felt in May due to the difference amid the purchase and sales prices, with steel prices falling in the month because of the slower-than-expected demand recovery,” Baosteel, a subsidiary of the world’s largest steelmaker-China Baowu Steel Group, said in an investor interactive platform on May 22.
Foreign firms saw their profits slide 16.2% in January-April from a year earlier, while private-sector firms recorded a 22.5% plunge, according to a breakdown of the data.
We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.
AspenTech, a Massachusetts-based company, plays a pivotal role in the oil and gas industry by leveraging cutting-edge technologies, including AI (artificial intelligence). Let’s delve into how AspenTech contributes to this dynamic sector
It’s no secret that oil and gas is a boom-and-bust industry. Production is currently up, projected to increase to 13.7 million barrels daily in 2024. But this won’t last forever. Whether production is up or down, the key to maximizing production, optimizing efficiency, and taking advantage of increased profits is innovation, digital transformation,and automation.For stakeholders looking to deliver safer, more efficient, and cheaper energy, innovation and automation must be a top priority. Those who fall behind in the race to innovate, ultimately, run the risk of losing market share.
Talking to Thomas Hundertmark, a senior partner in McKinsey’s Houston office, Darren Woods is chairman and CEO of ExxonMobil made some crucial points and also gave some insights on what the conglomerate was doing in order to save the climate.
Today oil and gas producers face severe regulatory and public relations obstacles due to the concern with greenhouse gases and resource depletion. Calgary-based start-up, Advanced Upstream (“AU”), has been disrupting the oil and gas industry with simple and reliable innovative technologies. AU’s products help the oil and gas producers to enhance energy production while reducing the corresponding environmental impact. By decreasing personnel and time on site, and lowering overall HSE risks across the board, the clients can see a notable improvement in their ESG rating, contributing to their bottom line.
Jasmin Staiblin, Chief Executive Officer of ABB Switzerland, says, “Global energy consumption continues to grow and, if left unabated, will lead to an ever-greater risk of irreversibly changing our climate. To take advantage of more sustainable energy sources, the energy landscape is in a state of profound change to allow the integration of increasing amounts of renewable energy sources into the grid, to allow infrastructure to run more intelligently and efficiently, and to ensure the supply of energy is available at all times.
The activation of the Fallon Two Rock solar farm project has recently bolstered the Californian energy …