Kobelco Cranes and Kobelco Construction Machinery reported year-on-year increases in revenues and profit for the six months to 30 September, 2013, according to parent company Kobe Steel.
Revenues at Kobelco Construction Machinery were up 8.4% to $1.67 billion for the first half, while profit increased $46.1 million year-on-year to $103 million.
Kobe Steel said sales of excavators during the six month period were at a similar level to the same period last year, with sluggish demand in China and Southeast Asia was offset by increases in Japan.
“In addition to reconstruction demand from the Great East Japan Earthquake, demand grew prior to the implementation of stricter exhaust gas emission regulations,” the company said.
Meanwhile, Kobelco Cranes reported first half sales of $261 million, up 15.2% compared to last year. Profit stood at $17.4 million, up $26.6 million compared to the six months to 30 September, 2012.
Kobe Steel said the cranes business had been boosted by increased sales of crawler cranes in Japan and Southeast Asia, while sales decreased in Europe.
Despite the solid first half results, Kobe Steel has adjusted its full-year sales forecasts for the construction and cranes divisions downwards slightly.
It now expects Kobelco Construction Machinery to report full-year sales of $3.33 billion, down from its previous forecast of $3.38 billion. The profit forecast stood the same at $174 million.
And Kobelco Cranes is now expected to report revenues of $625 million, compared to the previous forecast of $635 million. The full-year profit forecast also stayed the same at $25.6 million.
Author: Helen Wright, KHL Group
Source: KHL Group