Kanamoto reports 40.3% revenue rise in latest quarter
By Murray Pollok09 April 2013
Kanamoto’s construction equipment rental division reported a 40.3% increase in revenues to Yen 27.1 billion (€210 million) and a 70% increase in profits to Yen 3.8 billion (€30 million) for the three months to 31 January.
The dramatic increase reflects the acquisition of a majority shareholding of Japanese road building rental company Unite Co last summer, now operating as a Kanamoto subsidiary, and also increased demand relating to post-earthquake reconstruction works.
Tohoku region, for example, saw revenues up 43.3% over the same period of the prior year, reflecting an increase in port restoration-related works in earthquake stricken areas; higher demand for restoration and recovery in the devastated regions; and revenues from decontamination-related projects in Iwaki and Fukushima prefectures.
The company has made restoration and recovery work in affected areas its most important priority. It said investment in public works continued to increase against the backdrop of earthquake restoration-related demand.
The company also warned about future uncertainty, with delays in some project starts because of factors such as a shortage of engineers and skilled workers because of restoration-related demand, and a sharp rise in labour and materials costs.
The company said it was investing aggressively in “adopting and providing new technologies and new labour-saving products, including information aided construction, to compensate for the shortage of engineers.”
The company reported a 19.8% reduction is sales of used fleet because it is retaining fleet in response to the demand reconstruction.