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

  • Telensa’s bright future after UK street lighting firm achieves 20% sales growth
    October 30, 2013
    Telensa, a leading UK-based ‘smart’ street lighting technology company, achieved sales of US$13 million and pre-tax profit of $2 million for the year ending 31 March 2013. The sales growth of just under 20% on the US$10.9 million achieved in 2011-12 is said to be the result of the company securing contracts from further UK street light contractors and local authorities for its PLANet (Public Lighting Active Network) wireless street light central management system (CMS).
    Read More
  • Haulotte reports strong performance
    February 18, 2016
    The Haulotte Group reports that a healthy business environment has seen it generate good sales and profit levels. The firm generated consolidated sales of €134.5 million in the fourth quarter of 2015 compared with €92.7 million for the same period in 2014. This represented an increase of 45%. Consolidated sales for the whole of 2015 hit €445.3 million compared with €412.6 million in 2014, an increase of 8%. The group said it benefited from favourable exchange rates in 2015 and saw its performance driven b
    Read More
  • China looks to the future with major highway plans
    February 15, 2012
    China is still moving ahead with plans that will give it the world's biggest highway system. Patrick Smith reports. As China's economy grows even more, keeping the country on the move has become a priority for the government. While the country has made great strides over the past decade in improving its infrastructure, the number of vehicles has also increased rapidly, and in some instances restrictions have been placed on them.
    Read More
  • Volvo Group opens SDLG excavator factory in Brazil
    August 9, 2013
    Production has started in Brazil of excavators from Shandong Lingong Construction Machinery (Lingong). The SDLG-branded machines will be built in a US$10 million purpose-built assembly hall within the Volvo Group site in Pederneiras, São Paulo state. Initially, four SDLG crawler excavator models will be produced at the new facility – the LG6150E, LG6210E, LG6225E and LG6250E models, covering weight classes from 13.8tonnes to 24.3tonnes. The excavators will be sold to companies working in a variety of indust
    Read More

Highlighted Content