For the six months ended June 30, 2021, revenue of Kubota Corporation and its subsidiaries increased by US $ 1,98 billion [24.6%] from the same period in the prior year to US $ 10,09 billion.
Domestic revenue increased by US $ 113,6 million [4.3%] from the same period in the prior year to 2.8 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.
Overseas revenue increased by US $ 1,9 billon [34.5%] from the same period in the prior year to US $ 7,3 billion, because of significantly increased sales of farm equipment and construction machinery, while revenue in Water & Environment decreased from the same period in the prior year.
Operating profit increased by US $ 604 million [80.7%] from the same period in the prior year to US $ 1.35 billion mainly due to significantly increased revenue in the domestic and overseas markets and improved foreign exchange rates, while there were some negative effects from increased fixed costs and a rise in material prices. Profit before income taxes increased by US $ 595 million [77.0%] from the same period in the prior year to US $ 1.37 billion due to increased operating profit.
Revenue from external customers and operating profit is to a large extent attributable to the Farm and Industrial Machinery segment. Farm & Industrial Machinery is comprised of farm equipment, agricultural-related products, engines, and construction machinery.
Revenue in this segment increased by 30.9% from the same period in the prior year to US $ 8.6 billion and accounted for 85.5% of consolidated revenue.
Domestic revenue increased by 10.9% from the same period in the prior year to US $ 1.47 billion. Sales of farm equipment and agricultural-related products increased due to a recovery from adverse reaction from rushed demand before the consumption tax hike and increased demand resulting from subsidies for business continuation of farmers.
Overseas revenue increased by 35.9% from the same period in the prior year to US $ 7.15 billion. In North America, sales of tractors and construction machinery increased significantly mainly due to strong demand along with trend in move to suburbs despite delay in production and shipment caused by port congestion and labor shortages. In addition, sales of engines recovered. In Europe, sales of construction machinery, tractors, and engines increased due to a recovery from sluggish sales along with the infection spread of COVID-19 in the prior year.
In Asia outside Japan, sales of farm equipment in Thailand significantly increased mainly due to favorable weather conditions and stable crop prices at a high level. In addition, sales of farm equipment in China, India, and Philippines were strong as well. In Other areas, sales of tractors and construction machinery in Australia increased significantly due to more rainfall than usual and government stimulus policies.
Operating profit in this segment increased by 65.1% from the same period in the prior year to US $ 1,32 billion, mainly due to significantly increased revenue in the domestic and overseas markets and deteriorated profitability of products, which had been shipped in the same period in the prior year, in its manufacturing bases, while some negative effects from increased fixed costs and a rise in material prices.
