03.08.2017

Weak start for Tadano

Tadano has issued its first quarter results which show a sharp fall in crane sales, particularly in Europe.

Total revenues for the first quarter were 16.1 percent lower than in the same quarter last year, at ¥35.2 billion ($319 million).

Mobile crane sales plummeted almost 30 percent to ¥19 billion ($172 million), loader crane sales improved 7.8 percent to ¥4.6 billion ($41.5 million), aerial lift sales were 7.6 percent higher at ¥4.8 billion ($43 million) and other revenues – parts service and used equipment – jumped 9.5 percent to ¥6.9 billion ($62 million). Sales of mobile cranes in Japan dropped 26 percent to ¥5.6 billion ($51 million) while exports fell 31 percent to ¥13.4 billion ($121 million).

Looking at more detailed sales by region, Europe fared worse with sales falling a whopping 45.5 percent to ¥3.1 billion ($30 million) all of this being mobile cranes of course.
North America also saw a substantial fall with sales down 12.8 percent to ¥6.75 billion ($61.2 million). South and Central American sales were 69 percent lower at ¥169 million ($1.5 million) Asian sales fell 35 percent to ¥2.8 billion ($24.4 million)
The Middle East was the only positive market with sales rising one percent to ¥2.7 billion ($24.75 million), sales to other overseas regions, including Oceania and Russia, were half a percent lower at ¥1.2 billion ($17.4 million). Total sales in Japan were ¥18.5 billion ($167 million).Pre-tax profits more than halved to ¥2.7 billion ($24.9 million).

The company is forecasting a much better second quarter, particularly in North America, with stronger increases in the Middle East. It is maintaining its previous forecasts and expects to come in with half year revenues in the region of ¥91 billion ($822 million)

Vertikal Comment

This a surprisingly poor result from Tadano which so far has managed to fare better than most of its competitors, the company has yet to provide any commentary to go with these numbers, but some of it will be exchange rate driven, while another factor may well involve shipping and invoicing delays, which would explain why the company is maintaining its original half year forecasts.

It might also provide some insight into the management changes that were recently implemented in its European operation? It is also interesting to see that sales of aerial lifts are growing which fits with the increased efforts we have seen to launch its truck mounted product line in regional export markets, such as New Zealand and South East Asia.

While this snapshot looks relatively grim, the company has plenty of opportunities that are yet untapped, such as expanding its crane distribution network and stepping up export efforts for loader crane and aerial lift product lines.

Expect the second quarter to be far better, if not there will be a good number of awkward questions being asked.