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KUBOTA REPORTS 1Q19 RESULTS
Source: Kubota news release

For the 3 months ended March 31, 2019, revenue of Kubota Corp. and its subsidiaries increased by $483.6 million (12.2%) from the same period in the prior year to $4.5 billion.

Domestic revenue increased by $61.2 million (4.4%) from the same period in the prior year to $1.4 billion because of increased revenue in all reportable segments, including Farm & Industrial Machinery, Water & Environment, and Other.

Overseas revenue increased by $422.3 million (16.3%) from the same period in the prior year to $3.0 billion because revenue in Farm & Industrial Machinery significantly increased due to strong sales of tractors and construction machinery. On the other hand, revenue in Water & Environment decreased.

Operating profit increased by $83.5 million (20.5%) from the same period in 2018 to $491.0 million. This increase was mainly due to some positive effects from increased sales in the domestic and overseas markets and the improved foreign exchange gain/loss, while there were some negative effects from increased fixed costs and a rise in material prices. Profit before income taxes increased by $84.4 million (20.3%) from the same period last year to $503.1 million due to increased operating profit. Income tax expenses were $132.7 million and profit for the period increased by $71.4 million (23.5%) from the same period in the prior year to $375 billion. Profit attributable to owners of the parent increased by $68.6 million (24.8%) from the same period in the prior year to $346.2 million.

Farm & Industrial Machinery

Farm & Industrial Machinery is comprised of farm equipment, agricultural-related products, engines and construction machinery. Revenue in this segment increased by 14.9% from the same period in the prior year to $3.6 billion, and accounted for 81.1% of consolidated revenue.

Domestic revenue increased by 4.9% from the same period in the prior year to $701.7 million due to increased sales of farm equipment, agricultural-related products, engines, and construction machinery.

Overseas revenue increased by 17.6% from the same period in the prior year to $2.9 billion. In North America, sales of tractors and construction machinery significantly increased due to restocking by dealers as well as solid demand. In Europe, revenue was almost at the same level as the prior year due to a negative effect from the yen appreciation against the Euro and the British pound sterling, while sales of tractors and engines increased. In Asia outside Japan, revenue increased because sales of farm equipment in Thailand significantly increased mainly due to stable prices of agricultural products. On the other hand, sales of combines and rice transplanters in China were stagnant.

Operating profit in this segment increased by 10.3% from the same period in the prior year to $480.8 million due to some positive effects from increased revenue in domestic and overseas markets and decreased sales promotion expenses resulting from lower interest rates in the U.S., which compensated for some negative effects from increased fixed costs and a rise in material prices.