Kubota Reports 1Q23 Revenue Up 32%

For the three months ended March 31, 2023, Kubota reported May 15 that its total revenue increased by $1.4 billion (+31.8%) from the same period in the prior year to $5.6 billion.

Overseas revenue increased by $1.3 billion (+41.8%) from the same period in the prior year to $4.4 billion because of increased revenue in Farm & Industrial Machinery and Water & Environment.

Operating profit increased by $0.3 billion (+54.6%) from the same period in the prior year to $0.7 billion mainly due to sales price increase and favorable impact from foreign exchange rates although there were some negative effects, such as an increase in sales incentive costs caused by a rise in interest rate, a rise in material prices, and an increase in various expenses mainly due to inflation. Profit before income taxes increased by $0.2 billion (+41%) from the same period in the prior year to $0.8 billion due to increased operating profit. 

Farm & Industrial Machinery is composed of farm equipment, agricultural‐related products, engines, and construction machinery.

Revenue in this segment increased by 37.2% from the same period in the prior year to $4.9 billion and accounted for 87.7% of consolidated revenue.

Domestic revenue increased by 9.3% from the same period in the prior year to $0.6 billion mainly due to increased sales of farm equipment and agricultural‐related products.

Overseas revenue increased by 41.9% from the same period in the prior year to $4.3 billion. In North America, sales increased due to significant progress of replenishment of dealer inventory due to relief of logistics congestion. In addition, sales of construction machinery increased thanks to backorders of home construction and demand for infrastructure construction by the government.

Operating profit in this segment increased by 80.8% from the same period in the prior year to $0.8 billion mainly due to some favorable impacts of foreign exchange rates, sales price increase, and sales increase although there were some negative effects from an increase in sales incentive cost caused by a rise in interest rate, a rise in material prices, and an increase in various expenses caused by inflation mainly.