Mining company BHP Billiton (ticker: BHP) reported 2005 half-year earnings results earlier today. CEO Chip Goodyear and COO Marius Kloppers provided a comprehensive look at China's economy during management's earnings results conference call:
On China's Economy
....China continues to show....strong GDP growth....higher than we had expected....(we) continue to expect it to be about 9%�
....fixed asset investment has continued to be quite strong. It has slowed a little bit but probably a little bit less than we might have expected.
....export growth has been good, particularly in the manufactured
area....(we) expect that to come under some margin pressure in the next year
to 6 months or so.
On Chinese Government Projects
....they�ve also focused on infrastructure....like the power system and the rail system - the government has been spending its time and money in those areas.
....shut down all of the small, inefficient, predominantly
inland-located steel mills and replace that capacity with large
On China's Iron and Coal Markets
....the growth market for iron ore has been China....it will....continue to be the growth market.
....we continue to be very bullish about....coke and coal.
....the cost increases in the Chinese coal industry has been dramatic....we think that that cost increase will continue, and continue to be quite dramatic.
On BHP's Outlook on China
....over the next several decades we see a significant number of people
that are looking for a better way of life, and that ultimately is going
to drive the resource business.
(Quotes are from the CCBN StreetEvents transcript.)
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