Falling just short of the magical US$20 billion-mark buyers couldn’t get enough of Kubota product lines as worldwide sales increased by 21.9% over last year
Even with severe product shortages in some markets, for the year ended 31 December 2022, the revenue of Kubota Corp. and its subsidiaries increased by US$3.6 billion to top US$19.97 billion, 21.9% more than the year prior.
And as Kubota executives predicted previously, it was the Japanese domestic revenue where the only decrease was recorded, down by US$3 million from the year prior to US$4.5 billion.
This result was put down to decreased revenue in Farm & Industrial Machinery, mainly farm equipment, while revenue from the domestic Water & Environment division actually increased.
Sales revenue from overseas markets increased by US$3.6 billion, a 30.3% jump from the prior year to $15.5 billion because of increased revenue in both of Farm & Industrial Machinery and Water & Environment.
North America led the charge in 2022 with sales revenue of US$8.21 billion recorded, up 34.4% on the US$6.11 billion recorded in 2021.
As a result, overseas revenue accounted for 77.5% of consolidated revenue, an increase of 4.9% over the year prior.
Total revenue from all world markets for Kubota’s Farm Equipment & Engines segment was US$13.58 billion in 2022, up 23.5% year-over-year.
North American revenue came in at $8.21 in 2022, up 34.4% from $6.11 billion in 2021. Revenue from the U.S. specifically was $7.24 billion for 2022.
Operating profit decreased by US$190 million, down 10.5% from the year prior to US$1.6 billion mainly due to some negative effects from a rise in material prices and logistics expenses despite some positive effects from sales price increase and the favourable impact of foreign exchange rates.
Profit before income taxes decreased by US$130 million, down 6.8% from the year prior to US$1.7 billion due to decreased operating profit. Income tax expenses were US$440 million.
The share of profits of investments accounted for using the equity method was US$12 million. Profit for the year decreased by US$95 million, down 6.8% from the year prior to US$1.3 billion. Profit attributable to owners of the parent decreased by US$14 million, down 10.6% from the year prior to US$1.16 billion.
Forecast earnings for the year ending December 2023
Consolidated revenue for the year ending 31 December 2023 is forecasted to increase by US$1.77 billion from the year prior to US$23.2 billion.
While in the Japanese domestic market, revenue in Farm & Industrial Machinery is expected to remain at the same level as the prior year due to the stagnation of rice prices. On the other hand, revenue in Water & Environment is expected to increase due to a rise in unit price resulting from the sales price increase.
In overseas markets, revenue in Farm & Industrial Machinery is expected to increase due to solid demand for construction machinery. In addition, sales of farm equipment are also expected to be firm although there are regional differences.
Operating profit is forecasted to be US$ 2.16 billion due to raising retail sales prices and overall sales increases despite the increase in fixed cost and remaining raw material cost at a high level caused by inflation. Profit before income taxes is forecast to be US$2.2 billion in 2023.
Profit attributable to owners of the parent is forecasted to be US$1.5 billion in 2023. With forecasts based on the assumption of exchange rates of ¥125=US$1 and ¥135=€1.
