Wafangdian Bearing Company Ltd. (Liaoning, China) posted third quarter results in 2002 improved over 2001.

Wafangdian is China's largest bearing company and as such is considered a bellwether for bearing manufacturers across the Pacific Rim. SKF (Sweden) holds a 20% stake in Wafangdian.

Third quarter sales were 275.24 million Yuan, netting 3.42 million Yuan.

Sales for the first three quarters of 2002 improved to 850.9 million Yuan. Net profit rose strongly, to 31.19 million Yuan, from only 11.9 million Yuan for the first three quarters of 2001.

Wafangdian's third quarter results, however, continue to illustrate the problem of margin erosion for Chinese producers. The company's net margin was 5% in 2000, had dropped to 3.8% for the first half of 2002 and now has fallen to 1.24% in this most recent quarter.

Those concerns were likely reflected in the stock's recent performance; Wafangdian has regularly led the list of percentage losers on the Shenzen B stock exchange.