Up 35% in Kobelco's half year

Kobelco Cranes claims sales of around 230 cranes in the first-half of the fiscal 2005, up 35%, or 60 units, on the 170 units sold in the same period in 2004. In addition to Japan, sales volume of Kobelco branded cranes increased in North America, Southeast Asia, the Middle East, India and Australia, the manufacturer claimed. Higher unit sales also contributed largely to higher profits. Kobelco achieved roughly 70% of its overseas sales target (in terms of units sold) for fiscal 2005 in the first half of the year.

Net sales for the period were Yen 16.8 billion (US$143 million) and pretax profit was Yen 718 million ($6.1 million), a 94.1% increase over the Yen 370 million in fiscal 2004. In a statement, the company said, “In the second half of fiscal 2005, world demand for cranes is anticipated to continue being firm. However, the higher cost of steel and other materials placing a downward pressure on profit is cause for concern.”

Good news, however, was a reduction in debt that is expected to improve the financial results.