Tadano : Consolidated Financial Results(Comprehensive) For First Quarter of FY 2020
0
08/04/2020 | 03:06am EDT
Consolidated Financial Results(Comprehensive) For First Quarter of FY 2020
(April 1, 2020 through June 30, 2020)
Notes:
Tadano Ltd. provides this comprehensive financial results report in order to supplement the previously released quantitative report with qualitative information concerning business results for the period under review. Unless otherwise stated, no amendments have been made to the quantitative information herein.
August 4, 2020
< Notes >
Forward-looking statements contained in this report are based on information available as of the date this report was prepared. A variety of factors may cause actual results to differ from projections.
1
Income Statement
While net sales increased due to the consolidation of Demag business, cost of sales ratio went up due to changes in the composition of sold cranes. Operating loss recorded for the first time in nine years since the
first quarter of FY2011.
(Unit: millions of yen)
FY2019
FY2020
Increase/
1Q
1Q
Decrease
Amount
Percentage
Amount
Percentage
Net sales
40,376
100%
43,213
100%
2,836
Cost of sales
30,003
74.3%
33,846
78.3%
3,842
Gross profit on installment sales
-11
-0.0%
-15
-0.0%
-3
Gross profit
10,360
25.7%
9,351
21.6%
-1,008
Selling, general, and
8,919
22.1%
9,921
23.0%
1,001
administrative expenses
Operating income
1,440
3.6%
-569
-1.3%
-2,010
Non-operating income and loss
-84
-0.2%
-227
-0.5%
-142
Ordinary income
1,356
3.4%
-796
-1.8%
-2,152
Extraordinary income and loss
-1
-0.0%
101
0.2%
103
Income before income taxes
1,354
3.4%
-694
-1.6%
-2,049
Corporate taxes
723
1.8%
314
0.7%
-408
Net income attributable to
-7
-0.0%
-4
-0.0%
3
noncontrolling interests
Net income attributable to
639
1.6%
-1,005
-2.3%
-1,645
owners of the parent
2
Major Factors Leading to Change in Operating Income
Despite expenses reduction, operating income decreased by ¥2.0 billion due to the decrease in sales volume and the consolidation of Demag business.
(Millions of yen)
2,000
1,440
-1,700
700
-617
1,000
600
0
-992
0
-569
-1,000
Volume
Sales Prices
Foreign
Expenses
Other
Demag
3
FY2019
FY2020
1Q
Exchange
Business
1Q
3
Balance Sheet
Accounts receivable decreased.
Inventories increased.
(¥107.2 billion total includes ¥18.9 billion at TFG and ¥27.9 billion at TDG）
(Unit: millions of yen)
FY2019
FY2020
Increase/
FY2019
FY2020
Increase/
Year-end
1Q
Decrease
Year-end
1Q
Decrease
Cash deposits
57,075
60,262
3,186
Accounts payable
40,745
37,766
-2,978
Accounts receivable
63,725
45,103
-18,621
Interest-bearing debt
63,070
63,883
812
Inventories
97,457
107,258
9,800
Other liabilities
48,621
44,206
-4,415
11,723
7,310
-4,412
Other current assets
Total liabilities
152,437
145,855
-6,581
Total current assets
229,982
219,935
-10,046
Total equity
159,609
155,475
-4,134
Tangible fixed assets
66,417
65,827
-590
Total liabilities
312,047
301,331
-10,715
and equity
Intangible fixed assets
1,705
1,613
-91
Investment and
13,942
13,955
12
other assets
FY2019
FY2019
FY2020
Total fixed assets
82,064
81,396
-668
1Q
1Q
Total assets
312,047
301,331
-10,715
Receivable turnover
93.4 days
88.7 days
95.0 days
Inventory turnover
167.8 days
135.6 days
225.9 days
Equity ratio
59.3%
50.8%
51.2%
4
Net Sales by Product
Crane sales outside of Japan increased due to the consolidation of Demag business.
(Unit: millions of yen)
FY2019
FY2020
Increase/Decrease
1Q
1Q
Amount Percentage
Mobile Cranes
23,396
26,567
3,171
13.6%
Truck Loader
5,584
4,273
-1,310
-23.5%
Cranes
Aerial Work
4,002
3,147
-855
-21.4%
Platforms
Other
7,393
9,224
1,831
24.8%
Total
40,376
43,213
2,836
7.0%
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan
7,728
5,913
-1,815
-23.5%
Outside Japan
15,667
20,653
4,986
31.8%
Total
23,396
26,567
3,171
13.6%
Exchange Rate
* Since the fiscal year for subsidiaries outside Japan ends in December,
the rates given here are January-March average.
USD
110.20
108.92
EUR
125.15
120.11
Net Sales by Product
（Millions of yen）
250,000
200,000
150,000
100,000
50,000
0
FY10 FY11
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
FY19
FY20
1Q
1Q
Mobile Cranes
Truck Loader Cranes
Aerial Work Platforms
Other
5
Net Sales by Destination
While demand decreased in all regions, net sales increased in North America and Europe due to the consolidation of Demag business.
(Unit: millions of yen)
FY2019
FY2020
Increase/Decrease
1Q
1Q
Amount
Percentage
Europe
4,483
8,457
3,974
88.6%
North America
5,666
9,865
4,199
74.1%
Caribbean, Central
726
1,799
1,072
147.8%
and South America
Asia
3,635
2,836
-798
-22.0%
Middle East
1,539
1,353
-186
-12.1%
Other
3,096
1,829
-1,266
-40.9%
Subtotal
19,147
26,141
6,994
36.5%
(total outside Japan sales)
Japan
21,229
17,071
-4,157
-19.6%
Total
40,376
43,213
2,836
7.0%
Outside Japan
47.4%
60.5%
Sales Ratio
（Millions of yen）
Net Sales by Destination
140,000
70%
120,000
60%
100,000
50%
80,000
40%
60,000
30%
40,000
20%
20,000
10%
0
0%
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY19
FY20
Europe
North America
1Q
1Q
Caribbean,Central and South America
Asia
Middle East
Other
Outside Japan Sales ratio
The graph above excludes Japan.
"Other" is comprised of Oceania, Africa and the CIS.
6
7
FY 2020 First Half Business Performance Forecast
FY2020 First Half（Released on July 31,2020）
(Unit: millions of yen)
FY2019
FY2020
Increase/Decrease
First Half
First Half Forecast
Amount
Percentage
Amount
Percentage
Amount
Percentage
Net sales
100,304
100%
88,000
100%
-12,304
-12.3%
Operating income
7,573
7.6%
-2,100
-2.4%
-9,673
-
Ordinary income
7,262
7.2%
-2,500
-2.8%
-9,762
-
Net income attributable to
5,064
5.0%
-3,100
-3.5%
-8,164
-
owners of the parent
FY2019
FY2020
Mid-year
¥14.00
Mid-year
¥0.00
Dividends per share
Year-end
¥14.00
Year-end
Undetermined
Full-year
¥28.00
Full-year
Undetermined
*The consolidated business performance forecast for FY 2020 has not yet been formulated 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.
*The mid-year dividends will not be paid. The year-end dividends forecast has not yet been determined and will be disclosed when the consolidated business performance forecast for FY 2020 becomes available.
8
Major Factors Leading to Change in Operating Income
Despite expenses reduction, operating income decreased by ¥9.6 billion due to the decrease in sales volume and the consolidation of Demag business.
(Millions of yen)
9,000
-9,600
7,573
6,000
3,000
2,900
-573
-3,000
-2,100
0
600
0
-3,000
FY2019
Volume
Sales Prices
Foreign
Expenses
Other
Demag
FY2020
First Half
Exchange
Business
First Half
Forecast
9
FY 2020 First Half Forecast (Net Sales by Product)
(Unit: millions of yen)
FY2019
FY2020
Increase/Decrease
First Half
First Half
Forecast
Amount Percentage
Mobile Cranes
64,199
53,800
-10,399
-16.2%
Truck Loader
11,265
9,300
-1,965
-17.4%
Cranes
Aerial Work
9,507
8,000
-1,507
-15.9%
Platforms
Other
15,332
16,900
1,568
10.2%
Total
100,304
88,000
-12,304
-12.3%
Breakdown of Mobile Crane Sales Inside and Outside Japan
Japan
24,984
17,500
-7,484
-30.0%
Outside Japan
39,214
36,300
-2,914
-7.4%
Total
64,199
53,800
-10,399
-16.2%
Exchange Rate
* Since the fiscal year for subsidiaries outside Japan ends in December,
the rates given here are January-June average.
USD
110.05
108.27
EUR
124.32
119.30
（Millions of yen）
Net Sales by Product
250,000
200,000
150,000
100,000
50,000
0
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY19
FY20
First Half
First Half
Forecast
Mobile Cranes
Truck Loader Cranes
Aerial Work Platforms
Other
10
FY 2020 First Half Forecast (Net Sales by Destination)
(Unit: millions of yen)
FY2019
FY2020
Increase/Decrease
First Half
First Half
Amount Percentage
Forecast
Europe
8,627
13,600
4,973
57.6%
North America
21,043
18,100
-2,943
-14.0%
Caribbean, Central
1,317
2,300
983
74.6%
and South America
Asia
6,729
5,100
-1,629
-24.2%
Middle East
3,064
3,500
436
14.2%
Other
5,377
3,900
-1,477
-27.5%
Subtotal
46,159
46,500
341
0.7%
(total outside Japan sales)
Japan
54,144
41,500
-12,644
-23.4%
Total
100,304
88,000
-12,304
-12.3%
Outside Japan
46.0%
52.8%
Sales ratio
（Millions of yen）
Net Sales by Destination
140,000
60%
120,000
50%
100,000
40%
80,000
30%
60,000
20%
40,000
20,000
10%
0
0%
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY19
FY20
First Half
First Half
Forecast
Europe
North America
Caribbean,Central and South America
Asia
Middle East
Other
Outside Japan Sales ratio
The graph above excludes Japan.
"Other" is comprised of Oceania, Africa and the CIS.
11
Effects of Coronavirus Disruption and Future Outlook
12
Effects of Coronavirus Disruption (Production, Sales, etc.)
【Effects on Production】
Situation through June
From July
Japan
・No large effects
・No effects on procurement or production
・Responding to downturns in demand
・Mar 23 - 31: Temporary closures of factories and offices
・Jul./Aug.: Continuation of short work hour
measures, including temporary stoppages for
Germany
・From Apr. 1: Short work hour measures, including temporary
certain factory lines
stoppages for certain factory lines
(Stoppage: approx. 30% of factory work)
USA
・No large effects
・No large effects
India
・Mar 23 - May 6: Temporary closures of factories, offices
・Gradual production rate increase
・From May 7: Gradual factory restart
（Currently at 70-80% capacity）
Apr. 25 - May 3: Temporary closures of factories, offices
・Jul.: Continuation of one-day closures of
Thailand
May 23 - May 31: Temporary closures of factories, offices
factories, offices each week
June: One-day closures of factories, offices each week
・Aug.: Planned return to normal operations
【Effects on Sales and Customer Support】
No large effects due to our teams continuing to work remotely and communicate via telephone and other methods.
【Effects on R&D and other Processes】
No large effects at present, due to implementation of remote working measures (remote work rate: 80%)
13
Effects of Coronavirus Disruption (Demand)
Demand by Region（Compared to same period of previous fiscal year）
Region
2020
Jan-Mar
Apr-Jun
Jul-Sep
Japan
-7%
-24%
Middle East
-12%
-28%
North
-16%
-47%
America
Europe
-9%
-23%
Fiscal Year 1st Half
Latin
-15%
-34%
Fiscal Year 2nd Half
America
Asia
-1%
-26%
Other
-16%
+5%
14
Future Outlook（Total Market）
【Future Outlook of Total Market】
・When the coronavirus disruption ends, the crane industry should recover relatively quickly
・The industry's demand cruising speed pre- and post-corona should not change drastically
・Until a vaccine is developed we will see a severe cycle of progress followed by retreat. We must be prepared for two years of hardship: One year to contain the pandemic and one year for market recovery.
・We must pay attention to changes in the measures implemented in each country. (As government policies shift from supporting the citizens in their life and work to supporting the greater economy through further stimulus).
15
135.2 billion yen
Future Outlook (By Region)
【Immediate Future Outlook by Region】
Region
Immediate Future Outlook
Japan
Gradual recovery barring sudden new outbreaks
Reduced sales opportunities since emergence of second
USA
coronavirus wave in late June. Need to monitor situation at least
through this year's Presidential election.
Europe
Recovery slow to take effect despite travel restrictions being eased
since Jun. 15
Latin
Sales opportunities have stopped since June due to expanding
America
outbreaks.
Asia
While outbreaks have largely subsided (outside India), severe
situation continues as economic activity restarts only gradually.
Australia: Demand gradually recovering due to economic stimulus
Other
in form of increasing public works.
Russia/Middle East: Slowdowns due in part to drop in oil prices.
16
Preparations for Prolonged
Coronavirus Disruption
【Newly acquired reserves: 53 billion yen】
・Short-term borrowing:15 billion yen
(2.5 billion yen on Jun. 30, 12.5 billion yen on Jul. 3) ・Issued Corporate (Straight) Bonds: 10 billion yen
(Jul. 10)
・Increased Committed Credit Line: 28 billion yen (Jul.31)
Tadano Ltd. published this content on 04 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2020 06:06:10 UTC
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