TADANO Telescopic View
News | Sitemap | Contact Us
(November 18, 2010)
| Sales | Operating Income (Loss) | Net Income (Loss) | |
|---|---|---|---|
| Second quarter period ended September 30, 2010 | 41,333(-20.0%) | (2,285) (-) | (2,950) (-) |
| Second quarter period ended September 30, 2009 | 51,657 | 2,060 | 768 |
Notes: Listed values less than one million yen are rounded off.
Percentage figures represent comparisons to the first quarter period of the previous fiscal year.
| Sales | Operating Income (Loss) | Net Income (Loss) | |
|---|---|---|---|
| Full year term | 100,000(-4.1%) | (600) (-) | (2,800) (-) |
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 second quarter under review, despite signs of recovery in capital investment as corporate earnings improved amid gentle growth in exports and production, the outlook for the Japanese economy remained murky, with employment prospects still harsh and growing concerns about the rapid rise in the value of the yen and sluggish stock markets, along with credit instability in Europe and uncertain prospects for the United States economy.
Demand in our industry exhibited recovery, albeit weak, in domestic demand for construction cranes. In overseas markets, while certain regions showed signs of recovery, demand in the major markets of Europe and North America fell by roughly 60%.
In response to such dramatic changes in the management environment, the Tadano Group sought to secure sales by expanding market share. The Group also continued its efforts to cut costs through SVE (Super Value Engineering) activities and efforts to achieve appropriate inventory levels and by cutting labor costs and drastically reducing overhead costs.
Domestic sales rose by 6.1% from the same period of the previous fiscal year to 23,280 million yen, with growth in sales of truck cranes and aerial work platforms. Overseas sales fell 39.3% from the same period of the previous fiscal year to 18,052 million yen, due to significant declines in demand and the strong yen. Total sales fell 20.0% to 41,333 million yen. The ratio of overseas sales to total sales was 43.7%.
Despite efforts to cut total labor costs and reduce overhead costs, we recorded ordinary losses of 2,593 million yen (vs. ordinary income of 1,965 million yen for the same period of the previous fiscal year). Contributing factors included a sharp decline in sales, rising costs due to the use of raw materials purchased when prices were high and lower operating ratios, and the occurrence of 333 million yen in foreign-exchange losses associated with the rise in the yen. The net loss for the quarter was 2,950 million yen (vs. net income of 768 million yen for the same period of the previous fiscal year), as a result of booking as extraordinary losses the figure of 1,957 million yen in revaluation losses on investment securities.