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(May 26, 2006)
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Fiscal year ended March 31, 2006 | 120,872 (18.7%) | 8,017 (52.9%) | 5,601 (44.4%) |
| Fiscal year ended March 31, 2005 | 101,846 | 5,245 | 3,877 |
Note: Listed values less than one million yen are rounded off.
Percentage indications of sales, operating income and net income show the ratio of increase or decrease respectively as compared with the previous year.
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Full year term | 130,000 | 9,000 | 5,700 |
Note: Listed values less than one million yen are rounded off.
Forward-looking statements contained in this report are based on information available as of the date of this report. A variety of factors may cause actual results to differ from projections.
The Japanese economy for fiscal year 2005 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 due to improved employment and income conditions.
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 favorable market.
In fiscal 2005, we made an all-out effort to secure sales through the full-scale launch of new products targeting overseas markets, which constitutes the driving force of the Mid-Term Management Plan, and sought to maintain or raise product prices to reflect the increasing costs of primary materials, including steel, which have continued to rise over the past two years. Furthermore, as part of our efforts to reduce total assets, we successfully reduced interest-bearing debt by shortening the turnover period for accounts receivable.
On the other hand, the unexpectedly strong recovery and expansion in demand in fiscal 2005 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 sales, bolstered by increased replacement demand for construction cranes, rose 9.6% year-on-year to 74,013 million yen, and export sales rose 36.7% to 46,859 million yen due to a substantial increase in the sales of construction cranes in North America and Europe. As a result, total sales amounted to 120,872 million yen, up 18.7% compared with the previous fiscal year.
Ordinary income rose 51.0% to 8,646 million yen, as increased sales more than offset the partial decline in production efficiency caused by deteriorating procurement conditions. Net income rose 44.4% to 5,601 million yen after posting: 597 million yen in gains from the sale of investment securities and 522 million yen in reversal of allowance for bad debts, as extraordinary income; 198 million yen in disposal losses on fixed assets and 114 million yen in impairment loss, as extraordinary loss; and 519 million yen in a partial reversal of deferred tax assets related to allowance for bad debts.
Outline of Key Product Lines
Construction Cranes
In the domestic market, sales of all terrain cranes grew steadily in addition to replacement demand centered around the mainstay 25-ton and 60-ton capacity rough terrain cranes. As a result, sales of construction cranes substantially rose 24.0% to 26,198 million yen, compared with the previous fiscal year.
In overseas markets, sales increased 32.7% to 32,695 million yen due mainly to the introduction of new rough terrain cranes as well as the ATF-160G (160-ton capacity) and ATF-110G (110-ton capacity) all-terrain cranes manufactured by FAUN, a manufacturing subsidiary of Tadano. In addition there were increased exports to the Middle East, where construction and capital investment projects remained active amid consistently high oil prices.
As a result, total sales of construction cranes amounted to 58,893 million yen, a substantial increase of 28.7% compared with the previous fiscal year.
Truck Loader Cranes
Sales grew steadily as we pursued expanded marketing in response to replacement demand for trucks that meet new diesel emission regulations. As a result, sales of truck loader cranes rose 11.6% year on year to 16,425 million yen.
Aerial Work Platforms
Sales of aerial work platforms increased substantially to 11,343 million yen, up 20.6% compared with the previous fiscal year, as we expanded our sales efforts targeting utility and the rental industry as well as the telecommunication sector against the backdrop of increased capital investment.
Others
With respect to parts, used cranes, and other items, although sales of used cranes declined in the domestic market due to undersupply, total sales in this segment rose 7.4% year-on-year to 29,917 million yen, due to a substantial increase of sales in overseas markets.