Machine tool manufacturer Flow International (ticker: FLOW) reported Q1 2006 earnings results yesterday. Key quotes from President and CEO Stephen Light during management's earnings results conference call:
In China, as we have pointed out in prior calls, the Chinese government desires to slow their economic expansion to achieve a soft landing and more sustainability. They chose the auto sector to gradually put on the brakes and there is no pun intended there, which we see as a slowing in demand for cutting cell. These macroeconomic actions have reduced our growth rate somewhat but we're seeing strong orders for shape cutting machines offsetting the cutting cell slowdown. Of course shape cutters have higher aftermarket parts consumption than the water-only robotic cells used in automotive works. So this mix shift will be positive for us over the long term.
(Quotes are from the CCBN StreetEvents transcript.)