11.02.2010

Tadano sales slip 42%

Tadano has published its results for the nine months to the end of December which show revenues of ¥72 billion ($802 million) a fall of 42.5 percent on the same period in 2008.

Operating income was ¥1.5 billion ($17.7 million) a fall of 85 percent, while the company posted a net loss for the period of ¥704 million ($7.8 million) compared to a net profit of ¥5.7 billion ($63 million) in 2008.

Tadano is now forecasting that full year revenues will come in at ¥105 billion ($1.17 billion) 35 percent lower than last year, while operating income will be down 90 percent at ¥1 billion. The company is anticipating making a small profit of ¥200 million ($2.2 million) - over 96 percent down on the year.

Sales in the company’s home market of Japan fell 44.6 percent to ¥30 billion ($339 million) due to a more than 60 percent decline in sales of mobile cranes. Export sales fell 41 percent ¥41.4 billion, accounting for almost 58 percent of total revenues.

The fall in operating income is explained by lower volumes, coupled higher-priced raw materials. The net loss was also driven by a valuation loss on investment securities of 1.9 billion ($21.3 million).

Tadano says: "domestic demand for new mobile cranes fell in the wake of customers’ conservative purchasing policies, while overseas markets, declined due to the suspension and postponement of various projects related to energy and other areas.”

“In response to the drastic change in the management environment, the Tadano Group endeavored to secure sales through measures such as cultivating new demand. We also sought to significantly cut back production by taking actions such as temporarily suspending operations and by making a focused effort to cut total personnel costs and reduce overhead costs.”

“In addition, personnel were reallocated to strengthen our non-price competitiveness and full-scale initiatives were launched to bring down costs in an effort to aggressively promote cost reduction.”

Sales by sector

Sales of mobile cranes fell 45 percent to ¥46.2 billion ($515 million)
Loader crane sales fell 48 percent to ¥4.7 billion ($51.3 million)
Aerial work platform sale dropped 45 percent to ¥4.7 billion ($52.9 million)
Used cranes and parts sales declined 29 percent to ¥16.3 billon ($182 million).