14.11.2023

Strong third quarter for Tadano

Tadano has released it’s results for the nine months to the end of September, the information published today, is relatively comprehensive, but the company does tend to release further information and commentary at a later date. So, we will update this item when we have it.

Total revenues for the nine months increased 23.5 percent to ¥203.9 billion ($1.36 billion) compared to the same period last year.
Pre-tax profit for the period improved 52 percent to ¥12.04 billion ($80.1 million), this was driven by higher prices and lower overhead costs as well as product and geographic mix, not to mention a weak Yen in comparison to the Dollar and Euro.

The breakdown by product type was as follows:
Mobile cranes ¥145 billion ($965.3 million) +36%
Loader cranes ¥13.3 billion ($88.4 million) +12.2%
Aerial work platforms ¥11.3 billion ($75.5 million) – 13.6%
Other revenues ¥34.3 billion ($228.1 million) +1.9%
Total revenues ¥203.9 billion ($1.36 billion) + 23.5%

Mobile crane sales Domestic / Export
Japan ¥36.78 billion ($244.8 million) +9.2%
Export ¥108.2 billion ($720.5 million) +48.5%

Sales by region
Europe ¥23.3 billion ($155 million) +1.2%
North America ¥63.7 billion ($424.15 million) +58.2%
Central/South America ¥3.2 billion ($21.3 million) - 7.5%
Asia ¥11.0 billion ($73.3 million) - 8.8%
Middle East ¥16.7 billion ($111.5 million) x 3 fold
Oceania ¥11.4 billion ($75.6 million) +24.5%
Other markets ¥1.1 billion ($7.2 million) - 17.9%
Japan ¥73.5 billion ($489.1 million) +4.4%
Total ¥203.9 billion ($1.36 billion) + 23.5%

Vertikal Comment

Overall, this is an excellent result from Tadano, both in its home market of Japan and overseas, however the main driver was North America where sales were not only substantially higher, but the product mix includes a high percentage of Rough Terrains, Tadano’s most profitable product range.

The same applies to the Middle East which maintained the strong bounce back seen in the first half.
Europe on the other hand saw very little growth as it continues to struggle with the integration of Demag into the Tadano organisation. Most of the sales would also have been All Terrains, currently the company’s least profitable product line,. As a result the business is, we understand racking up losses each quarter. The key to turning that around must surely lie with significant production while regaining lost market share and possibly product mix.

All in all, a very good overall result from Tadano with plenty of opportunities for further improvement and growth.