Kobelco targets growth in North America and Europe after re-entering markets

Kobelco Construction Machinery Group is expecting strong sales in North America and Europe in the 2014 financial year after recently re-entering both key markets after a decade-long absence. Consolidated net domestic sales in Japan in 2013 financial year (April 2013-March 2014) were up 29.2% year-on-year to US$1.362 billion (138.3 billion yen), with overseas sales at $1.771 billion (179.9 billion yen), a year-on-year increase of 11.9%. The ratio of overseas sales to consolidated net sales decreased slightl
May 19, 2014 Read time: 2 mins
2200 Kobelco Construction Machinery Group is expecting strong sales in North America and Europe in the 2014 financial year after recently re-entering both key markets after a decade-long absence.

Consolidated net domestic sales in Japan in 2013 financial year (April 2013-March 2014) were up 29.2% year-on-year to US$1.362 billion (138.3 billion yen), with overseas sales at $1.771 billion (179.9 billion yen), a year-on-year increase of 11.9%. The ratio of overseas sales to consolidated net sales decreased slightly year-on-year to 56.5%, compared to 60% in 2012.

Kobelco says its business environment “changed dramatically” in the 2013 financial year due to factors such as the booming domestic market, sudden downturn in Southeast Asia, and the Group’s re-entry into Europe and the US.

For the 2014 financial year, Kobelco is forecasting a sales decline in its native Japan due to an accelerated machine demand from rental companies in the previous financial year. The 2013-14 demand was said to be due to factors such as the launch of earthquake reconstruction projects, a large number of inspection and renovation works for aging infrastructure to build national resilience, and last-minute demand due to stricter emission Controls and the consumption tax increase from April 1 2014. The Group notes continuing “uncertainties” in the Chinese and Southeast Asian markets. However, it believes sales and marketing activities will “shift into full gear” in North America and Europe.  Overall, demand for Kobelco construction machinery is anticipated to show steady growth, and full production is forecast to continue at the Itsukaichi Factory and the Ogaki Factory, which manufacture heavy and mini excavators respectively.
Earthmoving & soil compaction Maintenance

For more information on companies in this article

Related Content

  • Road sector drives Europe’s construction recovery
    September 13, 2017
    Despite political concerns and upheavals, Europe’s construction market is on the up, reports Graham Anderson Europe’s road building market is forecast to grow strongly in real terms up to 2019, as a strengthening economy boosts construction, creating investment and jobs. The market is predicted to grow by 16% between 2016 and 2019 and is being led by increases in the UK (39%), Norway (38%) and Poland (35%). In the UK, the market is buoyed by a number of major projects coming on stream, such as England’
    Read More
  • Russia one of Europe “growth engines” for construction equipment
    June 4, 2013
    Russia is one of the “growth engines” for the European construction equipment industry, says Ralf Wezel, secretary general of CECE, the European Construction Equipment Association. According to the CECE, one out of three tower cranes produced and sold in Europe are currently going to Russia. The Association says that Russian governmental and private projects in the oil and gas industry and in the infrastructure and housing sectors are stimulating demand, with building hoists, truck mixers, concrete batching
    Read More
  • German firms bullish reports VDMA
    March 17, 2016
    German construction equipment manufacturers say that they achieved better results than the overall world market for machines during 2015. While German manufacturers’ sales developed positively in this industry, the global market experienced a double-digit downturn. “German companies were not as much affected by the severe downturns, such as in China, Latin America and Russia. Instead, we participated in the above-average positive developments of the European, Middle East, and North American markets,” said J
    Read More
  • UK support for speed cameras is high, except in London and north-east
    November 6, 2015
    A national UK survey by the Institute of Advanced Motorists (IAM) has shown that although most drivers support speed cameras, people in London and north-east are less enthusiastic. The survey polled 1,000 drivers of all age groups across Britain and asked “It is now common for the authorities to use speed cameras at the side of the road to identify vehicles involved in speeding offences. How acceptable do you think this is?” The national average is 79% but only 69% of Londoners said it was acceptable, do
    Read More

Highlighted Content