That’s down 16.4% overall for Total Farm Wheel Tractors for July, 20,621 ’05 vs. 24,674 ‘04.
</font><font color="blue" class="small">( The compact tractor marker is still strong.)</font>
Down nearly 27% for July, 9.9% YTD and heading into the historically weaker period of the year. Sounds like a serious decline to me.
</font><font color="blue" class="small">( Inventories are high for this time of year. Look for incentives and good deals to be available all fall. )</font>
Will be interesting, so far all I’ve seen is increased advertising with not much price discount. Hmmm, 27% rebate to go along with 27% decline....that might make some of us happy.
After years of a red hot real estate market in my area (especially the last 3) and 100% increase in prices last year, for the first time in many years I’m seeing “reduced” signs on houses.
One might blame drought, but depending on what percentage of this result is tractors vs. other product, (I don’t have a 10Q-10K) this appears to be counter to those numbers?
OSAKA, Japan--(BUSINESS WIRE)--Aug. 4, 2005--Net sales of Kubota Corp. (NYSE:KUB - News; hereinafter "the Company") during the three months under review, net sales were 219.5 billion yen, an 11.9% increase from the corresponding period in the prior year, resulting from favorable sales in the domestic and overseas markets.
In the domestic market sales of tractor and other agricultural machinery increased due to aggressive sales campaigns. In addition, sales of engines and construction machinery expanded sharply. Domestic sales in Pipes, Valves, and Industrial Castings increased owing to increased sales of plastic pipe and industrial castings. Increased sales of plastic pipe is attributable to the launch of Kubota-C.I. Co., Ltd., which was jointly established by the Company and C.I. Kasei Company Limited on April 1, 2005. Domestic sales in Environmental Engineering increased due to sales of Water and Sewage Engineering Division, and domestic sales in "Other" segment slightly increased as increase in sales of vending machine compensated the decrease in sales of the building materials business. As a result, total domestic sales increased 8.9%, to 119.5 billion yen from the corresponding period in the prior year.
Overseas sales increased 15.7% to 100.0 billion yen from the corresponding period in the prior year. Sales of engines and construction machinery continued rapid expansion in the U.S. and EU markets and sales of other products of the Internal Combustion Engine and Machinery segment increased steadily.
Operating income was 29.1 billion yen, a 27.5% increase from the corresponding period in the prior year. While price increases in raw materials and appreciation of yen negatively affected operating income, increased sales, centering on Internal Combustion Engine and Machinery, a decrease in pension costs, and profit on sale of properties contributed to the large increase in operating income.
Income before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies was 32.1 billion yen, a 24.4% increase from the corresponding period in the prior year, due to an increase in operating income. As a result, after income taxes, minority interests in earnings of subsidiaries and equity in net loss of affiliated companies, net income was 19.1 billion yen, a 36.2% increase from the corresponding period in the prior year.
As for the matter related to the health hazard of asbestos, which became an object of public concern in Japan, the Company declared its intention to act seriously and faithfully for various issues of the health hazard of asbestos in its press release "Notice on the Company's action for the health hazard of asbestos" dated June 30, 2005. The Company, which previously manufactured asbestos-containing products for a long time, has decided to take the actions from the view point of CSR (Corporate Social Responsibility). The Company has not recorded any accrual of loss contingencies so far, because it is difficult for the Company to reasonably estimate the amount of the expenses related to this matter.
