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(May 15, 2013)
1.Consolidated business results for the fiscal year from April 1, 2012 to March 31, 2013
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Fiscal year ended March 31, 2013 | 134,836 (18.1%) | 10,925 (85.3%) | 7,341 (133.4%) |
| Fiscal year ended March 31, 2012 | 114,209 (27.2%) | 5,895 ( - ) | 3,145 ( - ) |
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.
2.Outlook for consolidated business performance for the fiscal year from April 1, 2013 to March 31, 2014
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Full year term | 155,000 (15.0%) | 15,500 (41.9%) | 9,500 (29.4%) |
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.
3.Overview of the fiscal year ended March 31, 2013
Towards the end of fiscal year 2012, Japan's economy showed signs of a recovery, due in part to a bullish stock market and devaluation of the yen that began around the time the new government took office. The European economy remained slow, signs of recovery were apparent in some emerging markets such as China, and the U.S. economy saw slight gains.
Domestic demand in the crane industry increased as rising utilization rates related to Great Tohoku Earthquake recovery and restoration efforts boosted scheduled equipment replacement. Overseas, demand rose in North America, Asia, the Middle East, Australia, and other markets, primarily in sectors related to energy and infrastructure.
Amid such business conditions, the TADANO Group has resuming appropriate sales prices in Japanese market and focused on expanding overseas sales amid historic highs of the yen in world currency markets. It has also made progress in achieving further cost reductions through its SVE (Sustainable and super Value Engineering) activities. In addition, as part of the strategies set out in the TADANO Group Mid-Term Management Plan (2011-2013), it established a subsidiary in Thailand to serve as its first overseas production base for Truck Loader Cranes, with operations slated to start there in June 2013.
Led by growth in sales of Mobile Cranes, Truｃk Loader Cranes, and Aerial Work Platforms, domestic sales rose 12.0% over the previous fiscal year to 68,675 million yen. Backed by recovering demand, overseas sales rose to 66,160 million yen, up 25.1% from the previous fiscal year. As a result, total sales rose by 18.1% from the previous fiscal year to 134,836 million yen. Overseas sales accounted for 49.1% of all sales. Efforts to ensure appropriate sales prices together with rising sales increased gross margin and resulted in operating profits of 10,925 million yen, up 85.3% from the previous fiscal year. Net income totaled 7,341 million yen, up 133.4% from the previous fiscal year.
Regarding the case of malfeasance by a former vice-president of a TADANO consolidated subsidiary in the U.S., TADANO made efforts to prevent reoccurrence of such an incident through means including strengthening checks-and-balances functions through reviewing the control systems at overseas subsidiaries and enhancing the functions for monitoring of overseas subsidiaries by TADANO. TADANO once again apologizes for the considerable inconvenience and concern this incident has caused shareholders, investors, and other related parties.
Outline of Key Product Lines
Mobile Cranes
Domestic sales of Mobile Cranes rose by 10.3% from the previous fiscal year to 26,640 million yen, due to continued efforts to resuming appropriate sales prices in Japanese market as equipment replacement advanced.
Overseas sales rose to 53,907 million yen, up 27.5% from the previous fiscal year, backed by recovering demand in North America, Asia, the Middle East, Australia, and other markets. Total sales of Mobile Cranes increased by 21.2% from the previous fiscal year to 80,547 million yen.
Truck Loader Cranes
Backed by rising truck demand and rising installation rates, domestic sales of Truck Loader Cranes rose by 37.5% from the previous fiscal year to 13,978 million yen.
Overseas sales totaled 1,234 million yen, up 2.4% from the previous fiscal year.
Total sales of Truck Loader Cranes increased to 15,213 million yen, up 33.8% from the previous fiscal year.
Aerial Work Platforms
A focus on sales to the rental industry, which has seen vigorous capital investment, helped boost sales of Aerial Work Platforms by 9.0% from the previous fiscal year to 12,853 million yen, despite a slowdown in sales for electric power and electrical construction use.
Others
Sales of parts, repairs, used cranes, and other products and services rose by 6.6% from the previous fiscal year to 26,222 million yen.
4. Outlook for the fiscal year ended March 31,2014
We expect the Japanese economy to move toward recovery backed by factors such as improving export conditions and the effects of economic measures and monetary policy. Potential areas of concern include downward pressure on the economy from the European debt crisis and other factors, as well as issues related to Iran and North Korea.
Despite the sluggish recovery in European markets, we expect overseas demand to remain largely unchanged overall due to increased demand from various projects, including those related to energy. We anticipate an increase in domestic demand driven by Great Tohoku Earthquake recovery and restoration efforts, disaster prevention and mitigation, and renovation of aged infrastructure.
Under the TADANO Group 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 realize this by implementing the following seven strategies, divided into three operating strategies, two competitive strategies, and two fundamental strategies:
(1) Operating strategies:
i) Making Inroads into Strategic Markets
ii) Developing Eco-Friendly Products
iii) Developing Large LE Products
(2) Competitive strategies:
i) Enhancing Cost Competitiveness
ii) Improving Quality and Service
(3) Fundamental strategies:
i) Enhancing Monozukuri (Manufacturing) capabilities
ii) Globalizing Our Organization and Human Resources
For the last fiscal year in the current TADANO Group Mid-Term Management Plan (2011-2013), we exert ourselves to improve profitability and for further sales promotion overseas.