02.11.2014

40% jump for Kobelco Cranes

Kobelco Cranes has reported a 40.8 percent increase in first half revenues to ¥35.8 billion ($319 million) compared to the same period in 2013, while pre-tax profits for the period almost doubled from ¥1.7 billion in the first half of 2013 to ¥3.1 billion this year. ($15 - $27.6 million).

Looking at the second quarter sales were up 36 percent to ¥18.9 billion ($168.2 million) with pre-tax profits of ¥1.4 billion ($12.5 million), an increase of 56 percent on last year.

Kobelco now believes that the current upswing will remain strong throughout the second half and into next year. Much of the growth is down to strong domestic and regional demand along with solid overseas sales, particularly in North America. As a result it is now forecasting full year revenues of ¥73 billion an increase of more than 30 percent on last year.

Vertikal Comment

Kobelco is really beginning to create some momentum now both from improved distribution beginning to kick in at the same time as it benefits from earlier investments. However to much of the improvement is down to a strong domestic market, along with strong sales in markets where is is already well established.

If it can only step up some recent efforts to expand its market coverage, particularly in Europe it will face several years of substantial growth which will provide a more sustainable revenues base going forward.