Despite global economic challenges, Liugong is not only “confident” in its global market strategy, but it has the numbers to show its success.
The company achieved an operating profit that increased 34 percent and 9.95 percent net profit increase during 2013, compared to 2012, Zeng Guang’an, chairman of Guangxi LiuGong Machinery Co., Ltd. and president of Guangxi LiuGong Group Co., Ltd., told editors during a March 4 press conference at ConExpo-Con/Agg 2014 in Las Vegas.
“It is definitely good news for us and the whole [construction] industry,” Zeng said. “We are committed to this market.”
LiuGong North America closed 2013 with a record-breaking month in last December in the North American market, making its fourth quarter of last year as the most profitable year. The company achieved more than 150-percent year-over-year revenue growth for 2013, with four consecutive profitable quarters since Liugong started its North American business in 2008
In 2013, it took three separate companies that were not profitable as separate entities — LiuGong CE (Construction Equipment), Dressta North America and LiuGong FL (Forklifts) — and combined them.
“We combined three losing companies,” said Marc Dowdell, president of Liugong North America, “and through capitalizing on economies of scale, training of cross functional teams, increased hiring of industry professionals, and an expanding dealer network, LiuGong North America was not only profitable for the year, but profitable for every quarter.
The key, Dowdell said, was to expand the aftermarket sales division and expand cross-training expertise across three companies. “Dealers were also key in this expansion,” Dowdell said. “In 2013, we formed alliances with key banking partners as well.”
