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(January 29, 2010)
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Third quarter period ended December 31, 2009 | 71,948(-42.5%) | 1,591 (-84.6%) | -704 |
| Third quarter period ended December 31, 2008 | 125,192 | 10,365 | 5,659 |
Notes: Listed values less than one million yen are rounded off.
Percentage figures represent comparisons to the third quarter period of the previous fiscal year.
| Sales | Operating Income | Net Income | |
|---|---|---|---|
| Full year term | 105,000(-35.5%) | 1,000(-90.4%) | 200(-96.4%) |
Note: Percentage figures represent comparisons to the same period of the previous fiscal year.
Explanation concerning appropriate use of result forecasts and other matters of note:
The projections above are based on certain premises derived from information that has been available as of the day this material was released. The actual results may materially differ from the forecasts as a result of various unforeseen factors that may arise.
During the period under review, while exports and production appeared to be on the path of recovery with the decline in capital investment close to bottoming out, the outlook for the Japanese economy remained unclear, as employment and income conditions worsened further.
Demand in our industry dropped dramatically, as domestic demand for new construction cranes fell in the wake of customers' conservative purchasing policies. Demand also fell considerably in overseas markets, as orders for construction cranes declined due to the suspension and postponement of various projects related to energy and other areas.
In response to the drastic change in the management environment, the Tadano Group endeavored to secure sales through measures such as cultivating new demand. We also sought to significantly cut back production by taking actions such as temporarily suspending operations and by making a focused effort to cut total personnel costs and reduce overhead costs. In addition, personnel were reallocated to strengthen our non-price competitiveness and full-scale initiatives were launched to bring down costs in an effort to aggressively promote cost reduction.
Due to a sales decrease that exceeded our expectations, inventory reduction remains our greatest challenge in management.
Under these circumstances, domestic sales fell 44.6% compared with the same period of the previous fiscal year to 30,458 million yen, as sales of construction cranes suffered a substantial decline. Overseas sales fell 40.9% over the same period of the previous fiscal year to 41,490 million yen due to a considerable decline in demand and the rising yen.As a result, total sales fell 42.5% to 71,948 million yen. The ratio of overseas sales to total sales was 57.7%.
Despite efforts to cut total personnel costs and overhead costs, ordinary income fell 84.3% to 1,663 million yen due to the sharp decline in sales and the rise in costs resulting from the use of higher-priced raw materials and decreased operations. Net loss for the quarter was 704 million yen compared with a net income of 5,659 million yen in the same period of the previous fiscal year. This was due to a valuation loss on investment securities of 1,916 million yen for a single stock, which was reported as an extraordinary loss.
Construction Cranes
The domestic market exhibited an unprecedented decline in demand as customers concerned with the economic outlook held off purchases. As a result, despite our efforts to raise market share, sales plunged 60.7% to 10,606 million yen compared with the same period of the previous fiscal year.
In overseas markets, sales fell 38.4% to 35,597 million yen over the same period of the previous fiscal year due to the considerable decrease in demand and the rising yen.
Consequently, sales of construction cranes fell 45.5% to 46,203 million yen compared with the same period of the previous fiscal year.
Truck Loader Cranes
Record lows in demand for trucks continued, and sales of truck loader cranes fell 47.6% to 4,661 million yen compared with the same period of the previous fiscal year despite our efforts to expand sales of new models featuring enhanced mileage and quality.
Aerial Work Platforms
Demand from the electricity and electric works, telecommunications and rental industries dropped dramatically due to restrained capital investment, and sales of aerial platforms fell 44.9% to 4,745 million yen over the same period of the previous fiscal year despite our efforts to expand sales.
Others
Sales of used cranes and parts declined due to falling demand, and total sales of parts, repairs, used cranes and other items fell 28.7% to 16,338 million yen compared with the same period of the previous fiscal year.