Kubota Corp. financials
For the six months ended June 30, 2024, the revenue of the Kubota Corporation increased by 3.9% (¥59.6 billion) from the same period in the prior year to ¥1,579.6 billion. Domestic revenue decreased by 3.0% (¥9.4 billion) from the same period in the prior year to ¥305.7 billion because of decreased revenue from Farm & Industrial Machinery, Water & Environment and Other. Overseas revenue increased by 5.7% (¥68.9 billion) from the same period in the prior year to ¥1,273.9 billion because of increased revenue from Farm & Industrial Machinery and Water & Environment.
Operating profit increased by 12.3% mainly due to favorable effects from exchange rate fluctuation and price increase although there were some negative factors such as decreased sales in mostly Europe of Farm & Industrial Machinery and increased cost in sales incentive. Profit before income taxes increased by 13.0%.
Farm & Industrial Machinery segment
Farm & Industrial Machinery is composed of farm equipment, agricultural-related products, engines, and construction machinery. Revenue in this segment increased by 4.4% from the same period in the prior year to ¥1,403.4 billion, which accounted for 88.9% of consolidated revenue.
In North America, although the sales of CE increased steadily with demand for housing market and infrastructure development by the government, Kubota struggled with tractor business due to stagnation in the residential market and crop prices decline. In Europe, sales of CE and engines declined due to the effect of the continuous downturn in economy and investment. Tractor business also continued to be sluggish due to weak demand.
Forecasts for the year ending December 31, 2024
The Company revised its forecasts for revenue for the year ending December 31, 2024, downward to ¥3,000.0 billion, a decrease of ¥50.0 billion from the previous forecasts, which was announced on February 14, 2024. This revision was made because revenue is expected to decrease mainly in Europe and North America of Farm & Industrial Machinery segment.
Operating profit was revised to ¥330.0 billion, an increase of ¥10.0 billion from the previous forecasts considering the trends of fluctuation of exchange rate and material prices while downward sales revision is negative factor to operating profit. Profit before income taxes was revised to ¥348.0 billion, an increase of ¥15.0 billion from the previous forecasts and profit attributable to owners of the parent was revised to ¥235.0 billion, an increase of ¥9.0 billion from the previous forecasts.
These forecasts are based on the assumption of exchange rates of ¥150 = US$1 and ¥161 = €1.
