Kubota Corporation reported today its consolidated results of operations for the three months ended June 30, 2006.OSAKA, Japan -- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of Kubota Corp. (NYSE NYSE See: New York Stock Exchange :KUB) (hereinafter here·in·af·ter adv. In a following part of this document, statement, or book. hereinafter Adverb Formal or law from this point on in this document, matter, or case Adv. 1. "the Company") during the three months under review, net sales increased 29.1 billion yen (13.2 %), to 248.6 billion yen from the corresponding period in the prior year, due to substantially growing overseas sales in Internal Combustion Engine Internal combustion engine A prime mover, the fuel for which is burned within the engine, as contrasted to a steam engine, for example, in which fuel is burned in a separate furnace. and Machinery, while the domestic sales slightly decreased. Total domestic sales decreased 4.4 billion yen (3.7 %), to 115.2 billion yen from the corresponding period in the prior year. Sales in Internal Combustion Engine and Machinery were almost same level from the corresponding period in the prior year due to sales downturn of tractor and other farm machinery. Sales in Pipes, Valves, and Industrial Castings decreased due to the decrease of shipment in Industrial Castings Division from the corresponding period in the prior year, while ductile iron Ductile iron, also called ductile cast iron or nodular cast iron, is a type of cast iron invented in 1943 by Keith Millis[1]. While most varieties of cast iron are brittle, ductile iron is much more ductile, as the name implies. pipes and plastic pipes recorded steady sales. Sales in Environmental Engineering rose due to an increase of delivered orders during the three months under review in Waste Engineering Division. Sales in "Other" segment decreased mainly due to sales decrease of a subsidiary in construction business. Overseas sales increased 33.4 billion yen (33.5 %), to 133.4 billion yen from the corresponding period in the prior year. In sales of Internal Combustion Engine and Machinery, sales of tractors, other farm machinery, engines and construction machinery increased all together. As for tractors, the Company recorded steady sales in the U.S. market. In addition, sales of tractor in Asia, especially in Thailand, increased substantially. Sales of other farm machinery increased due to expanded sales of combine harvester combine harvester Farm machine used, mainly in developed countries, to harvest wheat and often other cereals. The mechanical ancestor of today's large combines was Cyrus H. McCormick's reaper, introduced in 1831. in China. Sales of engines increased due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. order from major client in the U.S. and Europe. With regard to construction machinery, the Company recorded increased sales not only in European market but also in the U.S. market. In addition, sales in Pipes, Valves, and Industrial Castings, (mainly in ductile iron pipes) and in Environmental Engineering (mainly in submerged membrane system) also increased from the corresponding period in the prior year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 7.7 billion yen (26.3 %), to 36.8 billion yen from the corresponding period in the prior year. Operating income in Internal Combustion Engine and Machinery increased due to increased sales in the U.S. and Asia, and favorable exchange rate between Yen and U.S. dollar comparing with the corresponding period in the prior year. Operating income in Pipes, Valves and Industrial Castings increased largely due to promoted cost reduction and increase of overseas sales in ductile iron pipes and industrial castings, while operating income in Environmental Engineering decreased due to sales decrease in Water & Sewage Engineering Division and profit deterioration resulting from price decline of sales orders The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. . Income before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. increased 8.1 billion yen (25.2 %), to 40.2 billion yen from the corresponding period in the prior year, due to an increase in operating income. Income taxes were 16.0 billion yen (39.8% of effective tax rate), and net amount of minority interests in earnings of subsidiaries and equity in net income of affiliated companies to deduct was 1.8 billion yen. As a result, net income increased 3.4 billion yen (17.7 %), to 22.4 billion yen from the corresponding period in the prior year. |
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