The company said that the Japanese market has bottomed out and sales and rental rates are increasing. As demand rises, the company admitted it is having problems delivering cranes.
“The Japanese economy for fiscal year 2006 emerged from a state of stagnation to enter a new phase of gradual yet sustained recovery, bolstered by vigorous capital investment against the backdrop of strong corporate earnings and resurging personal consumption,” the company said. “Under these operating conditions, there were indications in our industry that crane rental rates had bottomed out and were heading upward for customers in the domestic market, and demand for construction cranes increased substantially due to replacement demand. In overseas markets, demand grew significantly in North America, in addition to the Middle East, where we have been enjoying a favourable market.
“On the other hand, the unexpectedly strong recovery and expansion in demand in fiscal 2006 pinpointed the challenges we face in procurement and production, such as in parts procurement and factory production capacity. In January, we began to produce our own carriers for truck cranes due to the termination of production by our supplier.”
Domestic construction sales grew 24% to Yen 26m compared with the previous period. Export sales of construction cranes grew 33%, mainly on the back of new RTs and Faun’s ATF-110G and ATF-160G. Truck loader cranes grew 11.6% year-on-year, primarily meeting demand for replacements that meet new diesel emissions regulations.
Sales of used cranes fell in Japan because of undersupply.
