Kobelco crawlers rise amidst overall sales dip in 2012
29 April 2013Kobe Steel the parent company of Japanese manufacturer Kobelco has released its consolidated yearly results for 2012. The company said that in the wake of the 2011 Great East Japan Earthquake the first half of 2012 saw domestic business on a slow increase, with greater demand due to the high levels of reconstruction work. In the second half of the year, Japan’s economy remained weaker and sale of steel, aluminum, and copper products declined. The third quarter saw sluggish overseas market for steel products and a high yen both contributing to a worsening export market
Regarding Kobelco Cranes the business reported an increase in crawler crane unit sales compared with last year, attributing this to a higher domestic demand, because of the earthquake, and from overseas, particularly in North America and Southeast Asia. However, in the consolidated segment sales there was a decrease of 5.2% compared to the ¥45.5bn ($461m) recorded in 2011. Ordinary income decreased ¥2.4bn in comparison to an ordinary loss of ¥2.2bn last year. Kobe Steel said this was due to a shift in the types of cranes sold.
In its forecast for Kobleco in 2013 the company said that it expected unit sales to increase, as higher recovery demand in Japan is anticipated as the fallout from the Great East Japan Earthquake continues. The business also said that it was predicting segment sales in fiscal 2013 would rise compared to 2012.
In the longer term the predictions for the crane manufacturer was that domestic demand would continue to be strong as the country progresses with the process of rebuilding following the 2011 earthquake. It also anticipated that overseas demand would continue to be strong. Cost reductions, would be undertaken at Kobelco's Okubo Plant, which acts as the manufacturers 'mother plant'. The company also said it wanted to make the plants it constructed in India and China profitable.
Kobe Steel are currently drawing up the second phase of its medium to long term business vision for the company: Kobelco Vision "G" which will begin in 2013. The business said it would be making an announcement once the drafting of the plan was completed. It did however state that Vision "G" aimed to combine the knowledge and technologies from its various materials and machinery businesses to achieve the following three aims in the next five to ten years: Maintaining a presence in the global market, having a stable profit structure and strong financial foundation, as well as to prosper with its shareholders, business partners, employees and society.
The basic policies of Vision "G" were also set out: Firstly the company said that they would carry out a thorough pursuit of high-end "Only One" products. Secondly, it would seek to improve its manufacturing strengths. Also, Vision "G" would target expansion into growth markets, whilst harnessing the comprehensive capabilities of the Kobe Steel Group and make contributions to society.
