Revenues jump at Kubota

Japan-based equipment manufacturer Kubota is bullish on prospects for 2014 after reporting increases in revenues and net income for the fiscal year to 31 March, 2013.

Total revenues jumped +16% year-on-year to JPY 1.2 trillion (US$ 12 billion) for fiscal 2013, while net income was up +20% to JPY 74 billion (US$ 727 million). Kubota said revenues generated from its domestic market were up +9% to JPY 541 billion (US$ 5.3 billion), fuelled by robust growth in sales of construction machinery and engines as well as growth in the water and environment division.

In the overseas market, revenues increased +23% year-on-year to JPY 627 billion (US$ 6.2 billion). Kubota said this was down to significant expansion in its farm and industrial machinery division in North America, Europe and Asia.

Kubota’s farm and industrial machinery unit comprises farm equipment, engines, and construction machinery. Revenues in this segment increased +19% from the prior year to JPY 851 billion (US$ 8.4 billion), and accounted for 73% of total revenues.

The company said sales of construction machinery and engines substantially increased in Japan due to the demand for reconstruction work following the Great East Japan Earthquake in March 2011. Internationally, the company said sales of construction machinery increased significantly owing to fleet replacement by rental companies, while sales of engines also grew steadily.

Looking ahead to the full-year ending 31 March, 2014, Kubota forecast revenues of JPY 1.4 trillion (US$ 14 billion), boosted by an expected sharp rise in international sales from the farm and industrial machinery division. Net income is forecast to be JPY 100 billion (US$ 987 million).