21.02.2022

Tadano bounces back

Tadano has reported a solid improvement in its third quarter, with sales bouncing back in both Japan and overseas.

Total sales for the nine months were just over five percent higher at ¥139 billion ($1.2 billion), while pre-tax profits came in at ¥12.75 billion ($111 million) in comparison to a loss of ¥7.3 billion ($63.5 million) last year. The improvement came from a combination of higher prices, greater volume and lower costs. The company has also said that its restructuring efforts in Europe made a positive contribution. Total debt was seven percent higher at ¥101.3 billion ($883 million) due to higher inventories and working capital requirements in North America and Europe.

Looking at the nine month results in more detail, Tadano breaks sales down into four divisions, as follows:
Mobile cranes ¥83.4 billion ($727 million) + 7%
Loader cranes ¥14.1 billion ($90.3 million) + 0.1%
Aerial Work Platforms ¥11.3 billion ($98.8 million) - 7.1%
Other revenues ¥30.5 billion ($266 million) + 7.5%
Total ¥139 billion ($1.2 billion)

Geographically the results were split as follows:
Europe ¥21.7 billion ($189.4 million) + 4.6%
North America ¥28.5 billion ($248.7 million) + 3.8%
South America ¥912 million ($7.9 million) - 62.3%
Asia ¥9.6 billion ($84 million) + 15.3%
Middle East ¥3.79 billion ($33 million) - 20.7%
Other regions ¥11.78 billion ($102.7 million) + 71.5%

Total Exports ¥76.4 billion ($665.7 million) +1.8%
Total Japan ¥62.9 billion ($548.5 million) +5.1%

Full year forecasts

The company has lowered its full year revenue estimates by 4.7 percent and is now forecasting that they will come in at ¥205 billion ($1.79 billion) - still 10.2 percent up on the prior year. The forecast is split between exports of ¥112.6 billion ($981.4 million) and domestic Japanese sales of ¥92.4 billion ($805 million). While Tadano has lowered its full year revenue forecast it has upped its pre-tax profit estimates to ¥11 billion ($95.9 million).

Vertikal Comment

Tadano does not provide a great deal of commentary at this stage, but this is certainly an improvement over last year when it was still struggling with the Demag acquisition. While there is still some way to go with it, the improving market and restructuring do appear to be making a positive impact which seems to be gathering some momentum.