For the 9 months ended Sept. 30, 2021, revenue of Kubota Corporation and its subsidiaries (hereinafter, the “Company”) increased by $2.5 billion (+21%) from the same period in the prior year to $14.4 billion. Revenue for the third quarter of 2021 came in at $4,728.8 million, up 14.3% from $4,137 in the same quarter last year.

Domestic revenue increased by $90 million (+2.4%) from the same period in the prior year to $3.9 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 $2.4 billion (+29.8%) from the same period in the prior year to $10.5 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.

Kubota 3Q21 financials

Operating profit increased by $710 million (+62.8%) from the same period in the prior year to $1.9 billion mainly due to significantly increased revenue in the domestic and overseas markets and favorable impact of foreign exchange rates, while there were some negative effects from increased fixed costs along with an increase in production and operating activities and a rise in material prices. Operating profit for the third quarter was $621.2 million, up 45.2% from $427.9 million in the same quarter last year.

Profit before income taxes increased by $660 million (+54.1%) from the same period in the prior year to $1.9 billion due to increased operating profit. Income tax expenses were ¥55.4 billion. Share of profits of investments accounted for using the equity method was $22 million. Profit for the period increased by $480 million (+51.7%) from the same period in the prior year to $1.4 billion. Profit attributable to owners of the parent increased by $440 million (+52%) from the same period in the prior year to $1.3 billion.

Kubota 3Q21 revenue by region

Revenue by region in the third quarter was highest in North America, with total revenue coming in at $1,831.9 million, up 23.1% year-over-year. Revenue in the Japan region came in at $1,256.2 million, down 1.4% from $1,273.9 million in the same quarter last year.  Asia outside Japan had the next highest revenue in the quarter at $861.3 million (+11.6% year-over-year), followed by Europe at $604.6 million (+34.7%) and Other Areas at $174.8 million (+13.4%).

The forecasts of the results of operations for the year ending Dec. 31, 2021, which were announced on Aug. 3, 2021, remain unchanged.

Farm & Industrial Machinery

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

Revenue in this segment increased by 26.5% from the same period in the prior year to $12.3 billion and accounted for 85.8% of consolidated revenue.

Domestic revenue increased by 7.7% from the same period in the prior year to $2.1 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 31.1% from the same period in the prior year to $10.2 billion. In North America, sales of tractors and construction machinery increased significantly due to strong demand along with trend in move to suburbs despite continued delay in production and shipment caused by port congestion and labor shortages. In Europe, sales of construction machinery, tractors, and engines increased due to continued recovery trend 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 increased significantly mainly due to favorable weather conditions. In addition, sales of farm equipment in India were strong as well. In Other areas, sales of tractors and construction machinery in Australia increased significantly due to government stimulus policies.

Operating profit in this segment increased by 57.9% from the same period in the prior year to $1.9 billion due to significantly increased revenue in the domestic and overseas markets, raised product price, and favorable impact of foreign exchange rates, while there were some negative effects from increased fixed costs and a rise in material prices.