Domestic recovery boosts Tadano sales
By Sarah Ann McCay19 August 2012
Recovery in the Japanese economy and increased domestic demand for machinery linked to the ongoing earthquake recovery efforts pushed up sales and operating income at Tadano.
The Japanese crane manufacturer reported sales of 28,240 million Yen (US$ 355 million) for the first quarter from April to June 2012, an increase of 44.1% over the same period in 2011.
Domestic sales rose 43.8% from the same period of the previous fiscal year to 12,979 million Yen (US$ 163 million), led by growth in sales of mobile cranes and truck loader cranes. Strong demand also pushed overseas sales to 15,261 million Yen (US$ 192 million), up 44.4% from the same period of the previous fiscal year.
Tadano's operating income achieved 1,895 million Yen (US$ 24 million), compared to a loss of 117 million Yen (US$ 1.5 million) for the same period the previous year.
Tadano forecasts that total fiscal year sales will reach 132,000 million Yen (US$ 1.6 billion), a growth of 15.6% over the previous year. Operating income is forecast to reach 7,500 million Yen (US$ 94 million), amounting to a 27.2 rise and net income is forecast to hit 4,500 million (US$ 56 million), a 43.1% rise.
According to Tadano, domestic demand in the crane industry doubled, rebounding from the decline last year caused by supply shortages. Increasing utilization rates related to earthquake recovery and restoration efforts, which accelerated equipment replacement, drove this growth, said the company. Overseas demand, driven primarily by energy and resource development, surged in markets including North America, Asia and Australia.