Kubota Reports 27% Rise in N. American Construction Equipment Revenue
Sales were buoyed by housing market demand and government-funded infrastructure development.
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The first half of 2024 has been good to Kubota’s construction business, though it forecasts coming declines as the year finishes.
Total construction revenue in the second quarter of 2024 came in at $1.2 billion, up 14.1% year-over-year. For the first six months of 2024, Kubota brought in $2.3 billion vs. $2.1 billion in the first half of 2023.
Looking at North America, construction revenue for the first half of the year was $1.6 billion, which represents a 27% year-over-year increase from the first half of 2023.
Kubota’s earnings release said North American construction equipment sales rose steadily with housing market demand and government-funded infrastructure development. However, tractor sales struggled on a stagnant residential market and declining crop prices.
Farm equipment and engines revenue in the quarter was up 8.3%, to $3.7 billion.
Consolidated revenue, including from Kubota’s water and environment business segment, came to $5.5 billion, an 8.9% year-over-year increase. Consolidated revenue from the United States was up 34.2% to $2.2 billion.
Kubota’s research and development expenses in 2024 are forecast to increase for the third year in a row to about $720 million, which would represent about 3.5% of total revenue. Capital expenditures for the year are also forecast to increase to $1.3 billion.
The company revised its 2024 full year consolidated revenue forecast to a 0.7% decline to $20.4 billion, based on a forecast decline in its European and North American farm and industrial machinery (including farm equipment, agricultural-related products, engines, and construction machinery) segment.
(Currency conversions as of August 12, 2024.)
