KUBOTA CORPORATION Financial Results for FY 2024 1st Quarter
May 10, 2024
Financial Summary for FY 2024 1st Quarter
（Unit: billions of yen） | FY 2024 | FY 2023 | Changes | |||||
1Q | 1Q | Amount | ％ | |||||
Revenue | 775.2 | 781.6 | -6.3 | -0.8 | ||||
Japan | 154.1 | 163.6 | -9.5 | -5.8 | ||||
Overseas | 621.1 | 618.0 | +3.1 | +0.5 | ||||
Operating | 13.3% | 13.2% | ||||||
profit | 103.0 | 103.2 | -0.3 | -0.3 | ||||
Profit before | 13.7% | 13.5% | ||||||
income taxes | 106.1 | 105.5 | +0.6 | +0.6 | ||||
Profit attributable to | 9.4% | 8.8% | ||||||
owners of the parent | 72.9 | 69.1 | +3.8 | +5.5 | ||||
1USD (JPY) | 149 | 132 | ||||||
1EUR (JPY) | 161 | 142 | ||||||
1THB (JPY) | 4.17 | 3.91 | ||||||
The effect of foreign exchange rate on revenue against LY was +63.0 billion yen.
(Financial Results for FY 2024 1st Quarter) | ©2024 Kubota Corporation All Rights Reserved. | 2 |
Revenue by Reportable Segment
Machinery: 680.2 billion yen (YoY: -4.8)
Japan
North
America
Europe
Asia
The agricultural machinery market has continued to be weak due to production cost increase even though rice price shows recovery.
The residential market of tractors has been slightly weaker than assumption due to continuous stagnation in business sentiment. Agricultural market has been coming to be slow more explicitly due to crop price decline.
The CE market has been steady thanks to the demand of housing construction and infrastructure development.
The market of CE and Engines slowed down in each country due to investment decrease by the public budget curtailment and interest rate hike.
Tractor sales has continued to be sluggish due to continuous weak investment by farmers.
In Thailand, purchasing refrain due to drought has continued while its effect is getting ease gradually. In India, the rice market and the dryland market are
■ Changes in revenue by region (Billions of yen)
+25.0 | +18.7 | |||||
+5.3 | ||||||
0 | ||||||
▲ 1.6 | ||||||
▲ 9.3 | ||||||
▲ 25.0 | ▲ 17.9 | |||||
Japan | North | Europe | Asia | Others | ||
America | ex.JP | |||||
Total | ▲ 9.3 | +18.7 | ▲ 17.9 | +5.3 | ▲ 1.6 | |
Agricultural | ▲ 5.1 | ▲ 10.7 | ▲ 5.2 | ▲ 2.5 | ▲ 2.4 | |
machinery * | ||||||
CE | ▲ 0.9 | +19.3 | ▲ 9.8 | +2.3 | +0.3 | |
except
Japan
shrinking due to water shortage.
In China, even though the market has started recovering, it is limited as subsidy reduction was announced by the government.
(Financial Results for FY 2024 1st Quarter)
* Tractors, combine harvesters, and rice transplanters
©2024 Kubota Corporation All Rights Reserved.
3
Revenue by Reportable Segment
Water & Environment: 90.3 billion yen (YoY: -0.7)
Pipe system
Industrial products
Environment
In the ductile iron pipes business, a demand and sales shifting to alternative pipes has continued due to the price increase. Sales of plastic pipes decreased due to weak sales for residential market although sales for infrastructure was steady.
The demand for cracking tubes was firm supported by construction of overseas plant although there was shipment delay.
In the air-conditioning equipment business, its sales were steady along with the trend to choose Japan as a new factory site although construction delay becomes chronic by a workforce shortage.
Pumps business was firm and business related to wastewater treatment was also steady thanks to factory construction such as electronic components in Japan. However, both businesses have been affected by construction delay.
The O&M business has progressed steadily.
■ Changes in revenue by business (Billions of yen)
+5.0
+2.3
0
-0.7
-2.3
-5.0
Pipe system | Industrial products | Environment |
Other: 4.7 billion yen (YoY: -0.9)
Other is mainly comprised of a variety of other services such as logistics.
(Financial Results for FY 2024 1st Quarter) | ©2024 Kubota Corporation All Rights Reserved. | 4 |
Operating Profit
Profit analysis (YoY change -0.3 billion yen)
(Unit: billions of yen) | 1USD(JPY) : 142→148* +7.0 | |||||||
1EUR(JPY) : 144→159* | +5.0 | North America -2.8, etc. | Logistics expenses | +12.8, | ||||
130 | Other currencies | +2.0 | ||||||
R&D expenses | -0.5, | |||||||
+14.0 | Depreciation and amortization | -2.2, etc. | ||||||
120 | - 0.6 | |||||||
- 3.7 | ||||||||
- 3.6 | ||||||||
110 | Foreign | - 22.3 | ||||||
exchange | 103.0 | |||||||
103.2 | Material | +2.8 | ||||||
gain/loss | ||||||||
Change in sales | +13.2 | |||||||
100 | Fluctuation | |||||||
incentive ratio | ||||||||
in exchange | ||||||||
Other | ||||||||
rates | ||||||||
90 | ||||||||
Machinery (Purchased parts, steel, etc.) -4.3 | Impact of | |||||||
80 | Water & Environment (Coil, PVC, etc.) | +0.6 | Sales price | |||||
increased or | ||||||||
increase | ||||||||
decreased | ||||||||
70 | sales | |||||||
60 | ||||||||
50 | ||||||||
FY 2023 | FY 2024 | |||||||
1Q | 1Q |
*Actual exchange rate for the profit pertaining to the export products from Japan in consideration of transportation and inventory periods
(Financial Results for FY 2024 1st Quarter) | ©2024 Kubota Corporation All Rights Reserved. | 5 |
Supplementary data of U.S.
■ YoY growth rate of retail sales units in tractor market by horsepower
Jan.-Mar. | Apr.-Jun. | Jul.-Sept. | Oct.-Dec. | Jan.-Jun. | Jan.-Sept. | Jan.-Dec. | ||||
0-40hp | -20.1% | -8.4% | -6.8% | -8.5% | -13.0% | -11.2% | -10.7% | |||
2023 | 40-120hp | -9.2% | -4.5% | -6.5% | -14.0% | -6.5% | -6.5% | -8.6% | ||
120-160hp | -0.2% | +0.1% | -0.6% | -9.3% | -0.0% | -0.2% | -3.1% | |||
0-40hp | -17.0% | - | - | - | - | - | - | |||
2024 | 40-120hp | -8.4% | - | - | - | - | - | - | ||
120-160hp | -2.6% | - | - | - | - | - | - | |||
Source: AEM (Association of Equipment Manufacturers) | ||||||||||
■ YoY growth rate of retail sales units in mini-excavator | ||||||||||
market (0-6t) | ||||||||||
Jan.-Mar. | Apr.-Jun. | Jul.-Sept. | Oct.-Dec. | Jan.-Jun. | Jan.-Sept. | Jan.-Dec. | ||||
2023 | +3.8% | +10.9% | -3.1% | +4.5% | +7.7% | +3.9% | +4.1% | |||
2024 | -14.2% | - | - | - | - | - | - | |||
Source: AEM (Association of Equipment Manufacturers) | ||||||||||
■ YoY growth rate of retail sales units in compact track | ||||||||||
loader market | ||||||||||
Jan.-Mar. | Apr.-Jun. | Jul.-Sept. | Oct.-Dec. | Jan.-Jun. | Jan.-Sept. | Jan.-Dec. | ||||
2023 | +17.4% | +3.3% | +5.9% | +4.0% | +9.4% | +8.2% | +6.9% | |||
2024 | -6.9% | - | - | - | - | - | - |
Source: AEM (Association of Equipment Manufacturers)
■ YoY growth rate of retail sales units in skid steer loader market
Jan.-Mar. | Apr.-Jun. | Jul.-Sept. | Oct.-Dec. | Jan.-Jun. | Jan.-Sept. | Jan.-Dec. | |
2023 | -5.3% | +4.5% | +7.9% | +28.7% | +0.1% | +2.6% | +10.7% |
2024 | +3.0% | - | - | - | - | - | - |
Source: AEM (Association of Equipment Manufacturers)
■ New privately owned housing units started (Seasonally adjusted annual rate)
(Thousand units) 2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Source: U.S. Census Bureau
(Financial Results for FY 2024 1st Quarter)
©2024 Kubota Corporation All Rights Reserved.
7
Supplementary data of Thailand and Japan
■ Export price of Thai rice (US$/t)
(US$) | Fragrant rice | White rice 100% B grade | ||||
1,400 | ||||||
1,200
1,000
800
600
400
200
0
■ Producers' price of Japanese rice (yen/ 60kg)
(Yen) |
14,000 |
12,000 |
10,000 |
Source: USDA, Thai Rice Exporters Association | Source: Ministry of Agriculture, Forestry and Fisheries |
(Financial Results for FY 2024 1st Quarter) | ©2024 Kubota Corporation All Rights Reserved. | 8 |
Safe Harbor
Cautionary Statements with Respect to Forward-Looking Statements
This document may contain forward-looking statements that are based on management's expectations, estimates, projections, and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company's markets, particularly government agricultural policies, levels of capital expenditures both in public and private sectors, foreign currency exchange rates, the occurrence of natural disasters, continued competitive pricing pressures in the marketplace, as well as the Company's ability to continue to gain acceptance of its products.
(Financial Results for FY 2024 1st Quarter) | ©2024 Kubota Corporation All Rights Reserved. | 9 |
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Kubota Corporation published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 06:04:09 UTC.
