Tadano operating income slides amid fall in demand outside Japan
3 August 2016 by Sotiris KanarisTadano has reported operating income of ¥5.8bn for the quarter period ended June 30, down 15.2% year-on-year. Over the same period, sales dropped by 7.1% to ¥42bn.
Apart from the decrease in sales, Tadano attributed the fall in operating income to exchange rate effects.
Net income stood at ¥4bn yen, down 15.6% compared to the same period of the previous fiscal year.
The company said utilization rates in the Japanese economy began to show patches of inconsistency with variation by region and customer, despite firm overall demand trends due to earthquake recovery and reconstruction, disaster preparedness and mitigation, efforts to address an aging infrastructure, and private sector construction investment.
Tadano found that demand increased in Europe but fell in North America, Southeast Asia, and the Middle East, with demand outside of Japan declining overall.
Sales of mobile cranes and truck loader cranes decreased, as total sales in the Japanese market amounted to ¥19.8bn, down 5% from the same period of the previous fiscal year.
“With demand trending strongly downward, sales outside of Japan decreased by 8.8% from the same period of the previous fiscal year to ¥22,184m, as we focused on capturing demand related to plants and infrastructure, introduced new product models, and sought to expand new customer sales,” the company said. Sales outside of Japan accounted for 52.8% of all sales.
