Kanamoto profits hit by Covid-19

Kanamoto’s construction rental division saw a 22.1% fall in operating profits to Yen 12.8 billion (€101 million) for the year to 31 October, with sales 0.6% lower at Yen 160.8 billion (€1.26 billion). Covid-19 had an impact on its results.

The Japanese company said public sector work remained steady, but private investment “did not reach a full-fledged recovery in rental demand for construction equipment, as construction was cancelled or postponed at some sites.”

It added that Japan’s economy continued to be unpredictable, “with corporate earnings and the employment environment on an improving trend, but with greatly restricted economic activities due to the spread of Covid-19.”

During the period, the group said it strengthened its operations through new business alliances in Japan and abroad, and expanded its product range to meet market demand.

In its outlook for the current fiscal year, Kanamoto said it did not expect “an optimistic outlook for rental demand for construction equipment in this difficult environment.”

However, it said it hoped that revenues would grow by 6.3% this year, helped by mergers and acquisitions in Japan and abroad “to further enhance the Group’s strength and its efforts in low market share regions and areas.”