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What: Shares of diesel and natural gas engine maker China Yuchai International
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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Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.