05.08.2012

Tadano jumps 44%

Japanese crane company Tadano has reported a strong increase in first quarter crane sales to the end of June - both domestically and overseas.

Total revenues for the quarter were ¥28.2 billion ($360 million), 44.1 percent higher than in the same period last year. This is due, says the company, to a comparison with low levels last year and the resulting doubling of local crane demand with rental companies seeing better rates and higher utilisation. Net profit for the period was ¥ 627 million ($8 million), compared to a loss of ¥124 million ($1.6 million) last year. The profit numbers include of provisions, including the costs of a fraud case at Tadano America.

Domestic sales were up 43.8 percent to ¥12.9 billion ($165.5 million) while overseas sales increased 44.4 percent to ¥15.3 billion ($194.6 million) – 54 percent of total sales. Overseas demand driven primarily by energy and resource development in North America, Asia and Australia.

The company is maintaining its full year forecast of a 15.6 percent growth in revenues to ¥132 billion ($1.68 billion) with net profits of ¥4.5 billion ($57.4 million) – 43.1 percent higher than last year.

Vertikal Comment

This is a strong result for Tadano in spite of the strong yen and a slowing Chinese market, both of which will have taken their toll.

The company looks set for a decent year – relatively speaking – the company could do considerably more if it followed the same corporate and marketing policies of the three other big international crane makers.

Looking forward it needs to keep a firm eye on the likes of Sany which is taking a far more aggressive stance towards developing the western markets than Tadano has or is. The company makes fantastic products that are second to none, but it is very conservative and – to some extent a little bit insular. It may want to be reviewing this strategy as it enters what looks like an upswing.