18.08.2014

Tadano boosted by Japan

Tadano has reported a solid start to its fiscal year with a double digit rise in first quarter revenues.

Total revenues increased 15.7 percent to ¥44.1 billion ($430 million), while pre-tax profits increased seven percent to ¥5.6 billion (54.6 million). The increase was mostly down to mobile and loader cranes where sales increased by 22.3 and 22.9 percent respectively, while sales of aerial work platforms declined seven percent.

Overall sales in Japan improved 20 percent to ¥16.7 billion ($163 million) with total exports increasing 13.1 percent to ¥27.3 billion ($266 million), with growth seen in Europe, the Middle East, South and Central America while sales in North America, Asia and Oceania all fell. Sales of mobile cranes in Japan Japan jumped 55.5 percent to ¥6.5 billion ($63.3 million) while mobile crane exports increased 15.5 percent to ¥23.9 billion ($233 million).

The company is maintaining its original forecast to increase a further five percent in 2014-15 to ¥192 billion ($1.88 billion)

The company said: “Within our industry, increasing utilisation rates in the Japanese market, driven by earthquake reconstruction efforts, disaster preparedness measures, measures to address aging infrastructures, and other factors led to a perceived shortage in the supply of cranes. With rising business confidence against a backdrop of higher prices and the coming Tokyo Olympics, demand increased. Outside of Japan and with the exception of Europe, where recovery has been moderate, demand declined.”

“Due to increased sales of mobile cranes and truck loader cranes, sales in the Japanese market totaled ¥16,743 million up 20 percent. Outside of Japanese markets, company efforts focused on expanding sales of larger products and capturing demand in energy and infrastructure sectors. Sales outside of Japan amounted to ¥27,339 million, up 13.1 percent.”

“Due to sales growth, efforts to resume appropriate pricing, exchange rate fluctuations, improved utilisation ratios, cost reductions, and other factors. Net income for the quarter totalled ¥3,698 million, down 6.9 percent from the same period during the previous fiscal year.”

Vertikal Comment

Another solid quarter from Tadano which looks set to have an excellent year, not only is it benefiting from an improving market in Japan, but is also seeing some decent growth in Europe and even stronger improvements in the Middle East. With North America set to improve it should see its sales bounce back a little in the next couple of quarters.

While Tadano’s forecasts always seem to be highly – almost suspiciously - accurate, there is a good chance this year that it will exceed its projections by a respectable margin. It certainly has the capability and demand.