Overseas sales drove much of Kubota Corp.’s increased revenues in the third quarter and first 9 months of 2018, ended Sept. 30. Overall, the company reported on Nov. 6 that revenues in the third quarter were $4.03 billion, up 8.2% vs. the same period last year. For the first 9 months of year, revenues rose by 7.4%, to $12 billion.
Through the first 9 months of the year, domestic revenue increased 1.8%, to $3.72 billion. Kubota says this the result of increased revenue in Farm & Industrial Machinery, which compensated for lower revenue in Water & Environment. Overseas revenue increased 10.1% from the same period in the prior year to $8.3 billion. Revenue in Farm & Industrial Machinery increased due to strong sales of construction machinery and tractors.
Operating profit decreased 0.5% from the same period in the prior year. This decrease was mainly due to the negative effects from an increase in fixed costs and a rise in material prices, while there were some positive effects, such as increased sales in the domestic and overseas markets and the yen depreciation against the Euro.
Kubota’s Farm & Industrial Machinery segment includes farm equipment, agricultural‐related products, engines, and construction machinery. Revenue in this segment increased by 8.7% from the same period in the prior year to about $10 billion and accounted for 83.5% of consolidated revenue through the first 9 months of 2018. Domestic revenue increased by 4.6% from the same period in the prior year to $2.1 billion. Overseas revenue increased by 9.8% from the same period in the prior year to Nearly $8 billion. In North America, sales of construction machinery and engines increased due to solid demand for construction. Sales of utility vehicles increased the introduction of new models as well. Sales of tractors increased as a result of continuous expansion of demand.
Kubota revised its forecasts for revenue for the year ending Dec. 31, 2018, upward to $16.1 billion, an increase of $877 million from the previous forecasts, which were announced on Aug. 2, 2018. The company said this revision was made because overseas revenue in tractors and construction machinery is expected to increase significantly mainly in North America compared with the previous forecasts. In the meantime, domestic revenue in Farm & Industrial Machinery and Water & Environment is forecast to decrease compared with the previous forecasts.