Sales and profits up for Kobelco
30 October 2008
Kobelco, the construction machinery division of Kobe Steel had sales of JPY 195 billion (US$ 1.9 billion) in the first half of the fiscal year (1 April to 31 March), up +11.8% on the JPY 174 billion (US$ 1.7 billion) reported for the same period in 2007. Profits rose +0.7% to JPY 13.1 billion (US$ 133 million) from JPY 13 billion (US$ 132 million).
Demand for excavators continued to be brisk in China and South East Asia, but declined in the US, European and Japanese markets, while demand for cranes continued to be strong in all world markets, said a company statement.
Kobelco doesn’t expect a second half recovery for excavator sales in Japan, the US or Europe, but is anticipating continued demand for cranes, continued the company statement.
Kobe Steel, in its full year forecasts, predicts that Kobelco should hit full year sales of JPY 395 billion (US$ 4 billion), up +16% on the JPY 339 billion (US$ 3.4 billion) recorded in 2007. However, forecasts are less optimistic about profits, with Kobelco expected to report full year profits of JPY 20 billion (US$ 202 million), down -12% on the JPY 22.8 billion (US$ 231 million) recorded last year.
