23.11.2022

Tadano upward trend

Tadano has published its first half results, for the six months to the end of September, which show a decent improvement in revenues and a strong bounce back in terms of profitability.

Total revenues for the period increased 8.8 percent to ¥131.3 billion ($929.2 million), made up as follows:

Mobile cranes ¥86.9 billion ($614.9 million) up 13.4 percent on the same period last year. Of this sales in Japan were ¥16.7 billion ($118.3 million), down 16.5 percent, while overseas mobile crane sales increased 24 percent to ¥70.2 billion ($496.6 million), partly due to exchange rate shifts and partly due to price increases and higher volumes.

Loader cranes Loader crane sales - mostly in Japan - declined 21.2 percent to ¥8.03 billion ($56.9 million).
Aerial Work Platform revenues from aerial work platforms- mostly truck mounted units in Japan- were flat at ¥8.32 billion ($58.8 million).
Other revenues other revenues, which includes replacement parts, services and used equipment, increased 9.6 percent to ¥28.1 billion ($198.7 million).

Total revenues by geographic region were as follows:

Europe: ¥23.0 billion ($162.6 million) +5.8%
North America: ¥40.3 billion ($285 million) +41.1%
South America: ¥3.5 billion ($24.5 million) - almost quadruple
Asia: ¥10.1 billion ($71.2 million) +18.3%
Middle East: ¥3.99 billion ($28.2 million) +16.3%
Other countries: ¥9.97 billion ($70.6 million) -12.0%
Total Overseas sales: ¥90.7 billion ($642.1 million) +21.9%

Japan: Total revenues in Japan were ¥40.6 billion ($287.1 million) down 12.4 percent on last year.

Pre-tax profits declined 60 percent to ¥5.3 billion ($37.5 million) However, the decline is entirely due to an exceptional gain of ¥11 billion) ($78.1 million) in the first half of 2021. If this is disregarded, operational pre-tax profits were 90 percent higher than last year at ¥4.2 billion ($29.7 million).

Interest bearing debt increased 3.5 percent to ¥101.7 billion ($720 million)

Full year forecast
Tadano originally forecast this current year to be roughly flat in terms of revenues with slightly lower pre-tax profits – however, it has now downgraded the forecast and expects revenues to decline 7.3 percent to ¥190 billion ($1.34 billion) with pre-tax profits of ¥3.8 billion ($26.9 million).

Vertikal Comment

This a decent result from Tadano, particularly the underlying profit pick up, the only comparison we can really make is with Manitowoc which has similar half year revenues, but faster growth than Tadano, however, Tadano’s profitability is significantly higher.

Tadano still has much to do following the 2019 acquisition of Demag, it has made significant progress, but the speed of change is still alien to Tadano which in the past has taken a very long term approach. The signs are that it is probably ‘over the hump’ as long as it can maintain or even step up the pace of product development in Europe. In an interview with the new chief executive Toshiaki Ujiie at bauma last month it became clear that he has a clear vision for the company and is under no illusions as to the short term challenges the business faces.
While the waters might be ‘choppy’ for Tadano over the next five years the longer term future looks positive.