28.02.2014

Export led recovery at Tadano

Japanese crane manufacturer Tadano saw revenues for the first nine months of its fiscal year - to the end of December - rise by more than 33 percent to ¥125billlion ($1.23 billion). Pre-tax profits for the same period almost doubled to ¥15.3 billion ($150.2 million).

Focusing on year to date revenues, exports increased 43.5 percent and now represent over 55 percent of Tadano’s sales. In Japan revenues were up 21 percent.

Geographically North America is the largest export market, increasing over 44 percent to ¥21.6 billion ($212 million), Europe increased 31 percent to ¥13.45 billion($132 million) and Asia was up 50 percent to ¥11.7 billion ($115 million). Sales to the Middle East almost doubled to ¥12.4 billion (122 million), while Oceania improved 31 percent to ¥9 billion ($88 million). Only sales to South America and the Caribbean fell – down four percent, but they represent less than two percent of the company’s revenues.

Sales of mobile cranes grew the fastest - up 50 percent to ¥82.2 billion ($806 million), while loader cranes improved 20 percent to ¥13.3 billion($130 million) and aerial work platforms up 8.7 percent to ¥9.6 billon ($94 million). Other revenues remained relatively static.

The company expects to end the full year up almost 30 percent at ¥175 billion ($1.7 billion) led my continuing progress with mobile crane exports.

Vertikal Comment

A strong set of numbers from Tadano, helped by a weaker Yen and improving markets for its products. The company produces some of the very best cranes on the market and could do substantially more business if it was only able to match the German and American producers when it comes to distribution and marketing management.

Its long term reputation and some key individuals in the USA and Australia have helped it win substantial market share in those regions, but in many other parts of the world it struggles or has patchy market coverage.

In spite of this a solid set of numbers that some of its competitors would be happy to replicate.