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(November 16, 2009)
| Sales | Operating income | Net Income | |
|---|---|---|---|
| Second quarter period ended September 30, 2009 | 51,657(-41.2%) | 2,060(-75.7%) | 768(-86.3%) |
| Second quarter period ended September 30, 2008 | 87,867 | 8,468 | 5,593 |
Notes: Listed values less than one million yen are rounded off.
Percentage figures represent comparisons to the first quarter period of the previous fiscal year.
| Sales | Operating income | Net Income | |
|---|---|---|---|
| Full year term | 105,000(-35.5%) | 1,000(-90.4%) | 200(-96.4%) |
Note: Percentage figures represent comparisons to the same period of the previous fiscal year.
Explanation concerning appropriate use of result forecasts and other matters of note:
The projections above are based on certain premises derived from information that has been available as of the day this material was released. The actual results may materially differ from the forecasts as a result of various unforeseen factors that may arise.
During the period under review, despite some signs of a recovery in exports and production, the outlook for the Japanese economy remained unclear, as capital investment continued to decline and employment and income conditions worsened further.
Demand in our industry dropped dramatically, as domestic demand for construction cranes fell in the wake of customersf conservative purchasing policies. Demand also fell considerably in overseas markets, as orders for construction cranes were canceled and new orders declined due to changes in the fund procurement environment as well as the suspension and postponement of various projects related to energy and other areas.
In response to the drastic change in the management environment, the Tadano Group endeavored to secure sales through measures such as raising market share. We also sought to significantly cut back production by taking actions such as temporarily suspending operations and by making a focused effort to cut total personnel costs and reduce overhead costs. In addition, personnel were reallocated to strengthen our non-price competitiveness and full-scale initiatives were launched to bring down costs in an effort to aggressively promote cost reduction.
Due to a sales decrease that exceeded our expectations, we were unable to reduce inventory, which remains our greatest challenge in management.
Under these circumstances, domestic sales fell 47.4% compared with the same period of the previous fiscal year to 21,940 million yen, as sales of construction cranes suffered a substantial decline. Overseas sales fell 35.7% over the same period of the previous fiscal year to 29,717 million yen due to a considerable decline in demand and the rising yen. As a result, total sales fell 41.2% to 51,657 million yen. The ratio of overseas sales to total sales was 57.5%.
Despite efforts to cut total personnel costs and reduce overhead costs, ordinary income fell 78.3% to 1,965 million yen due to the sharp decline in sales. Net income for the quarter fell 86.3% compared with the same period of the previous fiscal year to 768 million yen.