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(November 2, 2012)
| Sales | Operating Income (Loss) |
Net Income (Loss) |
|
|---|---|---|---|
| Second quarter period ended September 30, 2012 | 62,462(23.9%) | 4,257 (94.1%) | 2,190 (93.6%) |
| Second quarter period ended September 30, 2011 | 50,415(22.0%) | 2,193 (-) | 1,131 (-) |
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 | Net Income | |
|---|---|---|---|
| Full year term | 132,000(15.6%) | 8,500 (44.2%) | 4,700 (49.4%) |
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 second quarter under review, despite steady demand related to earthquake recovery and restoration efforts, various factors, including economic slowdown overseas, the continuing high value of the yen on international currency markets, and the end of the stimulus effects of eco-car subsidies, helped keep the Japanese economy at a standstill. The U.S. economy experienced gentle recovery, while a sense of slowing growth deepened for emerging markets, including China, and a continuing debt crisis helped maintain sluggishness in the European economy.
In our industry, increasing utilization rates in the domestic market related to earthquake recovery and restoration efforts helped support equipment replacement demand caused by aging equipment. Overseas, demand picked up significantly in North America, Asia, Australia, and other markets, driven primarily by energy and resources.
Boosted by strong growth in sales of mobile cranes and truck loader cranes, domestic sales rose to 31,642 million yen, up 21.0% from the same period of the previous fiscal year. Despite the strong yen, strong demand pushed overseas sales to 30,820 million yen, up 27.0% from the same period of the previous fiscal year. Total sales rose to 62,462 million yen, up 23.9% from the same period of the previous fiscal year. Overseas sales accounted for 49.3% of all sales.
Efforts to ensure appropriate pricing and expanding gross margins attributable to rising sales led to an operating income of 4,257 million yen, up 94.1% from the same period of the previous fiscal year. Net income for the quarter totaled 2,190 million yen, up 93.6% from the same period of the previous fiscal year. This figure reflects 72 million yen in revaluation losses booked on investment securities.
TADANO wishes to extend its heartfelt apologies to shareholders, investors, and other parties for the inconvenience and concerns associated with significant losses sustained in the case of malfeasance by a former vice-president at TADANO America Corp., a U.S. consolidated subsidiary, a case previously announced on June 9, 2012. Approaching this case with the utmost gravity, we intend to make every effort to regain trust and to prevent the recurrence of such incidents through various countermeasures, including efforts to strengthen checks and balances based on reviews of control systems at overseas affiliates and enhanced monitoring of TADANO's overseas affiliates.
Of damages projected to be up to US $9 million, the $3.13 million incurred through fiscal 2011 have already been booked as costs. The remaining $5.87 million is reflected in accounts receivable booked for the first quarter and in provisions for doubtful accounts booked after considering the amount projected to be recoverable.
Explanatory Materials on Consolidated Interim Financial Results(PDF:2,273KB)