At the end of 2020, the full year sales results for Kubota Corporation sat at a healthy US$17.6 billion, and while this was a decrease of US$640 million or 3.5% from the prior year, considering the COVID-19 pandemic it was a strong result.
It was at the domestic level where an unexpected decreased of US$290 million or 4.8% showed up when compared with the previous year. Japanese domestic sales reached US$5.7 billion.
Overseas sales revenue was hampered by delays in production and shipment and as a result decreased by US$350 million or 2.8% from the year prior to $11.9 billion.
These results reflect in an operating profit decrease of US$250 million or 13.1% from the prior year to $1.7 billion.
The Kubota Farm and Industrial Machinery division is comprised of farm equipment, agricultural-related products, engines, and construction machinery.
Revenue in this segment decreased by 3.2% from the prior year to US$14.3 billion, and accounted for 81.4% of consolidated revenue.
In the Farm and Industrial Machinery division, domestic revenue decreased by 4.4% from the prior year to US$2.8 billion. While overseas revenue decreased by 2.9% from the prior year to US$11.5 billion.
Defying all trends, in North America, retail sales from dealers to end customers were extremely strong mainly due to solid demand after April and a positive effect from introduction of new models.
However, overall construction machinery, sales of engines and tractors decreased by 4.7% when compared to last year to US$6.1 billion.
In Europe, sales of engines, construction machinery and tractors decreased by a hefty 9.1% to US$2 billion due to dealer shutdowns and a reduction in production of OEM clients for engines.
In the rest of Asia, a recovery in the second half of the year saw sales of engines and farm equipment in China increased due to recovered demand after resumption of economic activities.
In addition, sales of farm equipment in India increased as well. As a result, revenue in Asia outside Japan increased from the prior year by 3.8%, a US$3.1 billion sales result.
In the balance of world markets, including Australia sales increased by 9.2% to US$0.559 billion.
Kubota is bullish about 2021 and forecasts a revenue increase of 10.6% to US$19.5 billion, and says this will relay to a profit before income tax increase of 21% to US$2.1 billion
