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(May 15, 2012)
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Fiscal year ended March 31, 2012 | 114,209 (27.2%) | 5,895 (-------) | 3,145 (-------) |
| Fiscal year ended March 31, 2011 | 89,807 (- 13.9%) | -3,733 (-------) | -6,722 (-------) |
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 fiscal year.
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Full-year term | 132,000 (15.6%) | 7,500 (27.2%) | 4,500 (43.1%) |
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 this report was prepared. A variety of factors may cause actual results to differ from projections.
During fiscal year 2011, the Japanese economy recovered from the sudden downturn caused by last year's Great East Japan Earthquake. Nevertheless, several background factors slowed this recovery, including the financial crisis in Europe, the historically high value of the yen, and flooding in Thailand. Earthquake recovery efforts have driven domestic demand since the start of the year, while a stabilizing yen has helped exports rebound, leading to a gentle recovery. The U.S. economy continued to recover. The pace of economic growth in China slowed. The European economy is at a standstill.
Domestic production in the crane industry recovered, following a temporary drop caused by supply chain disruptions attributable to the earthquake. Increasing utilization rates related to earthquake recovery and restoration efforts boosted scheduled equipment replacement, increasing domestic demand significantly. Overseas demand surged in North America, the Caribbean and Central and South America, and the Middle East, primarily in areas related to energy and resources. Demand in Europe remained low.
Amid such business conditions, the TADANO Group has advanced efforts to expand overseas sales and achieve further cost reductions through its SVE (Super Value Engineering) activities. In domestic markets, the TADANO Group has prioritized appropriate sales prices over market share. In addition, it established a sales and service subsidiary in India as an opening gambit targeting inroads into strategic markets under the Mid-Term Management Plan (2011-2013).
Led by growth in sales of mobile cranes, truck loader cranes, and aerial work platforms, domestic sales rose 19.0% over the previous fiscal year to 61,337 million yen. Despite the historic strength of the yen, overseas sales rose to 52,872 million yen, up 38.1% from the previous fiscal year. Total sales rose by 27.2% from the previous fiscal year to 114,209 million yen. Overseas sales accounted for 46.3% of all sales.
Efforts to cut costs and expenses, growing gross margins attributable to rising sales, and efforts to ensure appropriate sales prices resulted in operating profits of 5,778 million yen, compared to operating losses of 3,886 million yen for the previous fiscal year. Net income totaled 3,145 million yen, compared to net losses of 6,722 million yen for the previous fiscal year, due to transfers from deferred tax assets in connection with cuts in corporate tax rates.
Outline of Key Product Lines
Mobile Cranes
Domestic sales of mobile cranes rose by 21.5% from the previous fiscal year to 24,146 million yen, due to efforts to prioritize appropriate sales prices over market share. Increasing utilization rates associated with earthquake recovery and restoration boosted scheduled equipment replacement and increased demand dramatically.
Despite the historic strength of the yen and sluggish demand in Europe, overseas sales rose sharply to 42,293 million yen, up 53.4% from the previous fiscal year, backed by recovering demand in North America, the Caribbean and Central and South America, and the Middle East.
Total sales of mobile cranes increased dramatically to 66,439 million yen (up 40.0% from the previous fiscal year).
Truck Loader Cranes
Backed by rising truck demand generated by earthquake-related demand, eco-vehicle subsidies, and other factors, domestic sales of truck loader cranes totaled 10,166 million yen, an increase of 42.2% from the previous fiscal year.
Overseas sales totaled 1,205 million yen, up 22.0% from the previous fiscal year.
Total sales of truck loader cranes increased dramatically to 11,372 million yen, up 39.8% from the previous fiscal year.
Aerial Work Platforms
A focus on sales to the rental industry, where demand recovery has been marked, helped boost sales of aerial work platforms by 16.9% from the previous fiscal year to 11,789 million yen.
Others
Sales of parts, repairs, used cranes, and other products and services were 24,607 million yen, up 1.9% from the previous fiscal year.
We expect the Japanese economy to experience a solid recovery driven by various factors, including domestic demand in the first half of the fiscal year backed by public investment, capital investment, and residential development, all related to full-fledged earthquake-recovery efforts, as well as improving export conditions in the second half, as the steady recovery in the U.S. economy spreads to Asia and Europe. Potential areas of concern include a rekindling of the financial crisis in Europe, exchange rates, and issues related to Iran and North Korea, as well as high oil prices and electric power shortages.
Despite a very sluggish recovery in European markets, we expect further recovery in overseas demand in the markets in which the TADANO Group operates. Various projects, including energy-related projects, will drive this demand. We anticipate further recovery in domestic demand driven by demand related to earthquake recovery and other factors.
Under its Mid-Term Management Plan (2011-2013), the TADANO Group will seek to be an enterprise capable of adapting to structural changes in markets and of withstanding market fluctuations. The Group will do this by implementing the following seven strategies, grouped into three business strategies, two competitiveness strategies, and two infrastructure strategies.
In fiscal year 2013, we plan to accelerate our efforts in strategic markets based on facilities development and enhancement.
Explanatory Materials on Consolidated Financial Results(PDF:2,078KB)