Solid farm and construction machinery performance was largely responsible for the 3.8% increase in Kubota Corporation consolidated revenue last year to around US$17.5 billion (JP¥1,920 billion).
Revenue from the concern’s farm (includes Kverneland, Great Plains and engines) and construction machinery division was up by 2.9% to US$14.3 billion, accounting for nearly 82% of total sales.
More than two-thirds of last year’s revenue came from outside of Japan, and Kubota reckons to have sold more tractors and construction machines in North America and Europe, particularly in France and Germany.
It was a mixed bag in Asia. Sales of combine harvesters stagnated in China but farm machinery sales increased in Thailand. The combined effects of the severe drought and general economic downturn saw a drop in demand for tractors in Australia.
Looking ahead, Kubota Corporation predicts further growth for its farm equipment and construction machinery for the rest of this year (particularly in North America and Asia), and forecasts total 2020 consolidated revenue of around US$17.6 billion (JP¥1,950.0 billion).
One potential fly in the ointment is the coronavirus. The company says that it is difficult to estimate the negative impact that the spread of the coronavirus might have on its operating results.
