The Kubota Corporation saw a decrease in sales of US$820 million for the first six months of 2020, to record US$8.4 billion revenue. This equates to an overall 8.9% decrease for the same period last year.
It was the same story for both domestic and overseas revenue. Domestic revenue decreased by 6.4% to US$2.7 billion, this was US$190 million lower than the same period the year before as farm and industrial machinery sales fell.
Overseas revenue took a bigger tumble with a decrease to US$5.6 billion, a 10.1% drop from the same period last year.
This equates to sales losses of US$630 million because of significantly decreased sales of construction machinery, tractors, and engines. Revenue from the Kubota Water and Environment division made up the balance.
Consolidated revenue for the year ending 31 December 2020 is forecast to decrease by US$1.3 billion from the prior year to US$16.8 billion. While operating profit is forecast to decrease by US$490 million from the prior year to US$1.4 billion.
This reflects reduced production volumes, in addition to significantly decreased revenue in the domestic and overseas markets.
Profit before income tax is forecast to decrease by US$510 million when compared to the prior year and settle at US$1.5 billion.