Higher sales lower profits for Tadano

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Tadano has posted a strong sales performance for the first quarter of its new financial year to the end of June, albeit with a fall in profits. 

Total revenues for the quarter were ¥40.4 billion ($377.7 million), however pre-tax profits declined by more than 38 percent to ¥1.4 billion ($12.7 million) thanks to higher production costs, a less attractive product and market sales mix and a rise in sales and general administration costs. Company debt at the end of the period was almost eight percent higher at ¥32.3 billion ($302.2 million).
Getting back to the revenues they were made up as follows.

Mobile crane sales were 23.6 percent higher than for the same period last year, at ¥23.4 billion ($218.9 million) of which ¥7.7 billion were to customers in Japan – an increase of 22.8 percent, while overseas sales amounted to ¥15.7 billion ($146.6 million) up 24.1 percent on last year.

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Loader crane sales, which is a largely domestic business, were 28.7 percent higher at ¥5.6 billion ($52.2 million), Aerial work platform sales – also mostly in Japan - declined 7.7 percent to ¥4 billion (37.4 million) and other sales – such as used equipment, spare parts and services etc.. improved 1.4 percent to ¥7.4 billion ($69.2 million).

Geographically the results were generally positive across the board, apart from the Middle East which is expected to pick up later in the year. European sales increased 12.6 percent to ¥4.5 billion ($41.9 million) while North America edged up almost two percent to ¥5.7 billion ($53.6 million). Sales in south and central America almost tripled to ¥726 million ($6.8 million). Asia was 18.6 percent higher at ¥3.6 billion ($34 million) the Middle East declined 1.3 percent to ¥1.5 billion ($14.4 million) while sales in other markets were up 71.9 percent at ¥3.1 billion ($29 million) total sales in Japan were 18.4 percent higher at ¥21.2 billion (179.1 million) – representing more than 53 percent of total revenues.

Tadano expects sales growth in the second quarter to improve across all types of cranes and platforms, and has a half year forecast of ¥100 billion ($935.5 million), up 21 percent on last year, the company has not confirmed if this includes a two month contribution from the Demag business, the acquisition of which completed yesterday. 

It anticipates increases from all regions apart from Europe where it expects to end up 11 percent lower, probably due to comparison with a strong second quarter last year boosted by the release of its delayed 60 tonne ATF60G All Terrain crane. North American sales are forecast to jump 40 percent with strong growth in South America, Asia, the Middle East and other areas. 

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