28.04.2015

Kobelco Cranes jumps 25%

Kobelco Cranes has reported the results for its fiscal year 2014, with total sales up 25.6 percent to ¥71.1 billion ($598 million). This thanks to stronger sales of crawler cranes, in Japan due to strong demand for cranes on the back of higher public investment and other factors, while overseas, unit sales increased particularly in North America and Asia. Pre-tax profits jumped 60 percent to ¥5.1 billion ($42.9 million).

In the fourth quarter sales increased 15.5 percent to ¥19.3 billion ($162.3 million), while pre-tax profits remained static at ¥600 million ($5 million).

Looking at this year, the company expects crane demand in Japan to remain firm, along with sales to North America and Asia, as a result it is forecasting total revenues of ¥81 billion ($681 million)for 2015.

Vertikal Comment

A good solid improvement for the year, although the final quarter showed slower growth, and it is this level of growth level that the company is using for its 2015 forecasts.

What it does not explain is why profits stagnated in the final quarter when the company posted such a strong profit surge in the first three quarters.

Kobelco is beginning to make more progress with crane sales in Europe again, while its products continue to find favour in North America and new production comes fully on stream in parts of Asia, such as India. The challenge to penetrate major European markets such as Germany remains, while regaining the ground that it appears to have lost in a markets such as the Benelux region.