Tadano results rise in “challenging” year

11 April 2008

Japan-based Tadano has seen substantial growth in its domestic and export sales in the first half of the current financial year. Rises in the April 2007 to March 2008 fiscal year came despite a tough season in the truck loader crane market.

Bolstered by replacement demand for construction cranes, domestic sales in the first half of the fiscal year rose 12.3% to Yen 44.9 billion (US$415 million), while overseas sales increased 29.3% to Yen 36.9 billion ($340 million), following a sharp increase in the sales of construction cranes in Europe and North America, the company said.

As a result net sales grew to Yen 81.8 billion ($755 million), a 19.3% increase compared with the same period of the 2006 to 2007 fiscal year. The ratio of overseas sales to total sales rose to a “record-breaking” 45.1%, added the company.

In the domestic market Tadano focused on the sales of its mainstay 25 tonne and 60 tonne rough terrain cranes, in response to growing replacement demand. Consequently, sales of construction cranes rose 24.1% to Yen 20 billion ($185 million) compared with the same period of the previous fiscal year, while overseas sales increased by 39% to Yen 28 billion ($259 million). Total sales of construction cranes were Yen 48.5 billion ($448 million), an increase of 32.4% on the previous fiscal year, said Tadano.

However, figures for the company's truck loader crane division told a different story, with a drop in sales of 86.2% compared to the same period of 2006 to 2007. “As the cycle of replacement demand for trucks that meet new diesel emission regulations came to an end, leading to a significant decline in demand for trucks, we endeavoured to boost the sales of cargo cranes by reinforcing sales activities targeting the rental industry,” according to the company.

Although sales of used cranes in the country were flat over the six month period, Tadano said its efforts to expand its parts and used crane division paid off with a 6.6% rise in sales to Yen 16 billion ($148 million). Sales of aerial platforms rose 18.1% to Yen 6.8 billion ($63 million).

In its forecast for the full year, Tadano said. “Some causes for concern remain, specifically the slow down of the US economy and fluctuating crude oil prices and foreign exchange rates.”

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