Makita quarterly profits grow 19%

Makita has revealed growth in terms of revenue and profit in the three months ended 30 June 2018.

Revenue rose 8.5% to 122,638 million yen from 113,064 million yen, like-for-like. Profit rose 19%, up from 13,179 million yen to 15,684 million yen.

Makita said it was buoyed by the global economic situation, with the economy gradually expanding, supported by strong employment and income situation and robust business performance in developed countries, principally the US. Makita did reference “rising uncertainties” including a decline in emerging-market currencies caused by a rise in US interest rates, the escalation of a trade dispute between the US and China, as well as growing political tension among EU members over the refugee and immigration issue.

REGIONAL

  • Revenue in Japan increased 10.0% to 21,475 million yen compared to the same period of the previous year. This was due to the continuation of steady sales of power tools and gardening equipment, particularly lithium-ion battery products.
  • Revenue in Europe increased 14.1% to 55,172 million yen, supported by solid demand for power tools in almost all areas and steady sales of gardening equipment, mainly rechargeable products.
  • Revenue in North America increased 1.3% to 17,165 million yen due to solid sales through other sales routes and in Canada, despite poor shipments to home improvement centers in the US.
  • Revenue in Asia decreased 6.7% to 10,163 million yen. This was due to sluggish sales in Vietnam, despite steady sales in China.
  • Revenue in Central and South America increased 3.7% to 6,701 million yen, due to robust sales in almost all countries amid concerns over negative impacts from the depreciation of each country’s currency.
  • Revenue in Oceania increased 8.3% to 7,921 million yen, supported by continued steady sales, mainly driven by lithium-ion battery products.
  • Revenue in the Middle East and Africa increased 12.2% to 4,041 million yen. This was because of large shipments to local distributors, despite poor sales amid political and economic turmoil in the Middle East.

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