Kito has announced its Q3 Fiscal Year results ending March 31, 2022, reporting sales were up in the third quarter marking an all-time high for the company.

In the presentation by Yoshio Kito, president & CEO, Kito and Shigeki Osozawa, MD, GM, Corporate Financial Management Division, the company said demand in North America and Europe remains strong and in Japan and the rest of Asia is on a ‘gentle recovery path’.

“The impact on profits due to soaring costs for materials and transportation is becoming apparent every day and we’ve had to review our price structure occasionally to secure profits,” it said in a statement.

“By securing our supply chains, including suppliers and transportation routes, we are focusing on maintaining customer-service quality and expanding our market share.

Kito’s market share is 60% in Japan and 40% in the US. Europe is the world’s largest market for hoists and cranes, but because Kito was late to enter there its share here is only a few percent. That said, with cooperation from its four local subsidiaries it is making steady progress with brand penetration in Europe.

It announced during Q3 (April 1 to December 31, 2021) of fiscal 2021, ending March 31, 2022, despite intermittent constraints on economic activity in certain countries and regions, demand recovered sharply, centered on Western countries. At the same time, the impact on the overall economy from rising energy prices, as well as shortages of semiconductors and other materials, remains cause for concern. Under such conditions, supported by the firm recovery in demand in North America and Europe, Kito Group maintained a high operation rate at its factories, and focused on continuing to provide customer service by securing its supply chain, including material suppliers and transport routes.

As a result, net sales in the subject third quarter cumulative period amounted to ¥44,243 million (up 24.4% from the previous corresponding period), with operating income of ¥3,919 million (up 31.7%). Ordinary income totalled ¥3,964 million (up 37.7%) on a boost from foreign exchange gain, with net income attributable to owners of the parent of ¥2,871 million (up 118.4%), for a sharp rise in earnings.

Despite the prolonged state of emergency in Japan, demand recovered moderately. Exports continued to increase on growing demand in North America, Europe, and other overseas markets. As a result, net sales amounted to ¥19,826 million (up 30.4% from the previous corresponding period), with operating income of ¥4,456 million (up 42.0%).

Demand in the U.S. rose steadily on expectations for expanded infrastructure investment from government policy measures and continued proactive investment among private companies. As a result, net sales amounted to ¥21,672 million (up 29.3% from the previous corresponding period), with operating income of ¥1,211 million (up 84.7%), for a significant increase in both sales and earnings.

Firm increase in demand in China continued, with net sales amounting to ¥6,479 million (up 22.7% from the previous corresponding period), and operating income of ¥911 million (up 8.1%). Of note, the fiscal year for this segment starts in January, so the results for the subject period are from January through September.

Asia (excluding Japan and China)

Despite constraints on economic activity in Asian countries, demand recovered moderately. Net sales amounted to ¥1,974 million (up 18.5% from the previous corresponding period), with operating income of ¥118 million (up 147.8%).

Economic activity in Europe gained momentum from the start of the period, and demand improved significantly. A Dutch firm was also included as a subsidiary in the scope of consolidation at the end of the previous fiscal year. As a result, revenue rose significantly, with net sales amounting to ¥4,273 million (up 47.0% from the previous corresponding period). In terms of earnings, the segment posted an operating loss of ¥230 million.

In Australia, net sales amounted to ¥1,346 million (up 21.6% from the previous corresponding period) with operating income of ¥26 million.

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