Kubota’s earnings report for the first 9 months of 2022 highlighted the manufacturer’s continued success in growing North American ag and construction revenue.
In its earnings report for its second quarter earnings of 2022, Kubota reported $9.5 billion in revenue, up 14.4% from $8.3 billion earned in the first half of last year.
Revenue in the company's Farm Equipment & Industrial Machinery segment increased by 12.4% from the same period in the prior year to $3.9 billion and accounted for 84.2% of consolidated revenue.
Domestic revenue increased by $66 million (+1.3%) from the prior year to $5.2 billion because of increased revenue in Farm & Industrial Machinery mainly due to increased sales of farm equipment, despite a decrease in revenue in Water & Environment and Other.
According to a report from Mint, Kubota will receive an over 50% stake in Escorts by the end of March and "lay down a mid-term business and investment road map for Escorts Kubota, the new entity."
According to data from the Japanese Agricultural Machinery Manufacturers Assn. (JAMMA), a total of 120,061 tractors were produced in Japan in 2020, a year-over-year decline of 13.3% and a record low for the last 15 years.
Mahindra recently stated in a regulatory filing that the two companies have entered into a "business collaboration arrangement" that will "respond to diversifying customer needs and contribute to the sustainable development of Japanese agriculture."
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In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.