Cordless power tool launches boost Makita growth in Europe, US & Japan

Makita’s sales grew in the first six months of its financial year (ending 31 March 2018) with growth at home and abroad.

Consolidated net sales increased 15.4% from the previous year to 230,951 million yen (there was depreciation of the yen compared with the same period the previous year). Income before taxes increased 15.8% to 39,456 million yen.

Product launches

During the period, Makita’s product launched included lithium-ion battery product lines in the main, including models with high power brushless motors featuring power and speed equivalence with AC powered tools. The period also saw Makita launch what is believes is the industry’s first dust-collecting system that is wirelessly connected to cordless tools.

In terms of production, overseas factories strove to reduce costs while raising local content ratios. Automation has continued to be implemented to “improve product quality stability and enhance productivity”.

On the sales side, Makita invested in new office buildings in New Zealand and Austria and the opening of a new branch in Warsaw, Poland.

Territory break-down

Makita, which is celebrating its 45th year in the UK, saw net sales grew across virtually all locations:

  • Net sales in Japan increased 13.3% to 39,877 million yen compared to the same period of the previous year. This was due to robust sales of power tools and gardening equipment, mainly lithium-ion battery products.
  • Net sales in Europe increased by 16.5% to 98,586 million yen. This was due to a rise in sales in Western and Eastern Europe (almost in all regions).
  • Net sales in North America increased by 10.3% to 35,031 million yen, supported by solid housing demand. Net sales in Asia increased by 20.6% to 21,463 million yen. This was due to recovery of sales in China.
  • Other regions: Net sales in Central and South America, where the Brazilian economy showed signs of breaking out from stagnation, increased by 25.8% to 13,483 million yen. Net sales in Oceania, where lithium-ion battery products sold well, increased by 33.2% to 15,597 million yen.
  • Meanwhile, net sales in the Middle East and Africa, where a fall in crude oil prices affected the economy and political uncertainty continued, decreased by 16.1% to 6,914 million yen.

Makita recently opened its first regional Factory Service Centre and Training Academy in Glasgow.