16.05.2016

Modest rise for Tadano

Japanese crane and access manufacturer Tadano has published its provisional full year results with increased revenues and a small rise in profits.

Total revenues for the year were ¥209 billion, ($1.93 billion) 2.6 percent up on the previous year, of this mobile crane sales totalled ¥141.5 billion ($1.3 billion)- 3.7 percent up on the year, thanks to a 7.7 percent increase in the domestic Japanese market and a 1.6 percent increase in overseas sales to ¥90.4 billion ($831 million).

Aerial work platform sales, which occur mainly in Japan, increased 11.1 percent to ¥19.4 billion ($179 million). Loader crane sales – largely small telescopics – fell 2.2 percent to ¥20.4 billion ($187 million), led by a 5.1 percent drop in the home market being only partially offset by a 47.5 percent jump in exports, albeit from a low base to ¥1.7 billion ($15.5 million). The balance of the revenues came from spare parts, service and used equipment sales which fell 4.2 percent overall to ¥28 billion ($258 million).

Net profit for the period increased just 0.7 percent to ¥19.6 billion ($180 million). The company is forecasting the market in Japan to remain strong, while it expects further downward pressure overseas resulting in a nine percent fall in revenues for the current fiscal year to ¥190 billion ($1.75 billion) while new profits will plunge 31 percent to ¥13.5billion ($124 million).

Vertikal Comment

Given the new models Tadano has launched, the market gains it has achieved and the fact that it plans to step up its international sales and marketing efforts, this is a gloomy forecast from the company. It does however have a substantial stake in the US Rough Terrain market, and a strong position in Australia, two areas that are likely to be weak for the next year or two. Offsetting that are an improving position in Europe with plenty of scope for growth. Although it is largely an All Terrain crane market and the plant in Germany is probably working close to current capacity?

This aside these are not bad numbers at all from Tadano, given what we have seen from some of the competition. The company is focussed on steady medium to long term growth so we would expect further investment on production plant capacity in Europe and more initiatives like the opening of the new distribution company in France etc…