Financial results for Tadano in the 12 months to March 31, 2020 show much higher sales but lower profit after the acquisition of Demag.
Sales at the Japanese crane maker were JPY227,949 million, up 21 percent (JPY39,497 million) on the JPY188,451 million in 2018. Operating income in 2019 was JPY15,623 million or 6.9 %, against JPY15,823 million or 8.4 % in 2018. It was down 1.3 % or JPY200 million.
Tadano’s acquisition of Demag was announced in February 2019 and completed in August of the same year. On the legacy business alone, Tadano said both revenue and profit increased.
Equipment sales outside Japan increased 35.1 % to JPY123.4 billion and were up in all regions, the company said. Sales in the home market of Japan increased 7.7 %. Mobile and truck loader crane sales increased there while aerial work platform sales were unchanged, Tadano said.
Sales of wheeled mobile all terrain and truck cranes were up 28.3 % to JPY150,818 million, from JPY117,556 million in 2018. Truck loader crane sales were up 7,2 % to JPY22,162 million. Aerial work platforms were the only product showing a decline in sales, to JPY17,986 million, down 1.8 % from JPY18,320 million.
Looking ahead Tadano said it has yet to formulate its forecast for 2020 “due to the difficulty in reasonably assessing the impact of the novel coronavirus disease Covid-19. The forecast will be disclosed after it becomes possible to assess these matters to a higher degree.”
On June 15 the exchange rate was US$1 = JPY107.