Kobelco Construction Machinery Company of Japan has reported consolidated net sales down 6.4% to ¥148,304m for the year to 31 March 2002.
Operating profit was down 64% to ¥1,859m and pre-tax profit fell 79% to ¥656m.
Kobelco said that both overseas and domestic market demand were sluggish. With sales of new machines hard to achieve, Kobelco focused on the sale of parts, used equipment and maintenance services.
To reduce operating costs the company consolidated crane production, reorganised marketing and servicing, reformed development processes, reduced lead time and improved logistics.
Overseas the company made vigorous efforts to expand business in the emerging China market, opened a used equipment centre in Singapore for the Southeast Asian market, and conducted sales promotion in North America and Europe backed by the weaker yen.
Kobelco consolidated its crane production base in September 2001 and combined the crane after-sales service organisation with that of the excavator business. It also began production and marketing of 25t rough terrain cranes with carriers made by Tadano and also parts procured jointly with Tadano. New crawler crane models in North America and Europe contributed to maintaining overseas sales volume.
For fiscal 2002 (ending March 2003) Kobelco forecasts consolidated net sales of ¥145,000m. Cost reduction measures are expected to help operating profit reach ¥2,550m.
