Ask IR Officers!
Here is a real-time report of the frequently asked questions during IR activities.
Jul. 01.2019 17:27
When will you make your financial results announcement of FY2019-Q1?
We plan to announce next financial results at 15:00 (JST) on August 6. We will disclose a tanshin report with explanatory slides in Japanese and English simultaneously.
Jun. 14.2019 10:59
While projecting another year of record-high sales and profit for fiscal 2019 overall, why are you predicting year-on-year decreases in both sales and profit for the first half, April to September?
We are projecting those decreases because of unusually high sales and profit due to special factors in the first half of fiscal 2018, and the corresponding figures for the first half of this year will be lower by comparison. The first special factor was the effect of the new IT infrastructure, which caused a temporary production glitch in fiscal 2017 and higher-than-usual figures for order balance and plant operation rates in the first half of fiscal 2018. Another special factor was a major crane project in South Korea, which was recorded in the first half of 2018. Demand remains strong, however, so we can project year-on-year growth in both sales and profit for fiscal 2019 overall.
May. 21.2019 19:08
What happened in the fiscal 2018 yearend financial briefing?
In the briefing we outlined our results for FY2018, which ended in March with all-time-high sales and profit, our plan to increase sales and profit in FY2019, and our progress with the medium-term business plan. In the Q&A session that followed, we took questions about demand trends in Japan, the US and China, industries with current growth potential, and Kito's direction and initiatives. The briefing is available for viewing via video streaming at https://kito.com/ir/library/presentation
May. 13.2019 16:43
We understand that Kito is projecting growth in both sales and profit for the fiscal year ending March 2020.
With continuing brisk demand, we expect to beat the records for sales and profit achieved in the previous fiscal year. In Japan and North America we see demand related to investment in private-sector equipment and public infrastructure remain strong. We work on building market share further in China, where Kito's high product quality is increasingly appreciated as safety-awareness rises. To meet strong demand in markets around the world, we are building out our global production and supply system and improving supply chains by transferring some production to our US and Asia bases. At home we are pushing forward with reforms in production processes at the Yamanashi Plant. More details at https://kito.com/ir/library
May. 13.2019 16:36
Tell us about Kito's financial results for the year ended March 2019, which you announced on May 13, today.
We made record-high sales and profit for the year due to globally strong demand related to equipment investment. In Japan and North America, demand related to infrastructure propelled our business forward and private-sector investment remained strong. Production growth through the year in response to strong demand contributed to profits. Joint effort with two new European subsidiaries made products more competitive. More details at https://kito.com/ir/library
Apr. 03.2019 15:29
When will you make your financial results announcement of FY2018 ended March 2019?
We plan to announce full year financial results at 15:00 (JST) on Monday 13, May. We will disclose a tanshin report with explanatory slides in Japanese and English simultaneously. We also plan to have video of the financial briefing a few days later, in both languages.
Apr. 03.2019 15:10
Why does Kito have its main plant in Yamanashi Prefecture?
Kito was founded in Tokyo's Omori district in 1932, and moved to Kawasaki during the war. With the steady expansion of residential housing in the neighborhood, the company found it difficult to increase its production capacity, so in 1983 built its main plant in the current location in Yamanashi Prefecture. It chose Yamanashi for its access to the Chuo expressway, which had just opened for east-west connections to Tokyo area, and a planned southbound expressway toward Pacific Ocean. Its large campus supports comprehensive operations, from raw material supply to parts production, product assembly and final testing. In-house production of the key parts on which our products depend for safety and durability results in high quality and value for our customers.
Mar. 11.2019 15:00
Private-sector equipment investment seems to be slowing. Does that affect our performance?
As we noted in the December 6 Q&A column, Kito end-users are not limited to industries related to private-sector equipment investment. Nearly half of demand is related to public investment in construction, civil engineering, infrastructure and the like. This kind of demand is rising, particularly in construction to revamp aging infrastructure and recover from disaster. Our customer base is broad, encompassing various industries, so Kito is not susceptible to a demand trend in any industrial sector.
Mar. 06.2019 17:34
Tell us about US operations.
There are roughly two: Sales of hoists made in Japan, and production and sales of chain. The hoist operation began in earnest in 1990, when Kito entered the US market, while the chain operation began in 2014 with the local firm that joined our group that year. Currently our hoist chain is mostly produced at the Yamanashi Plant, we partially adopt US-made chain in our hoists. We are improving our supply chain by enhancing the link between the US hoist and chain operations.
Feb. 07.2019 17:45
Please summarize the business result for the FY 2018 3rd Quarter ended December 31, 2018.
We have been expanding production since the end of the last fiscal year, responding to demand related to private-sector equipment investment and expansion of infrastructure upgrades, mainly in Japan and the US. Even within China, where slowing markets are a concern, targeted domestic industries are generally doing well, allowing year-on-year growth in both sales and profit for the Group as a whole. Please refer to https://kito.com/ir/irnews for more details.
Jan. 09.2019 13:17
When will you make your financial results announcement of FY2018-Q3?
We plan to announce next financial results at 15:00 (JST) on February 7. We will disclose a tanshin report with explanatory slides in Japanese and English simultaneously.
Dec. 28.2018 11:02
I understand that production was temporarily slowed last year due to problems with the full replacement of IT infrastructure. How has production been since then?
We completely replaced our IT infrastructure in July 2017. Production and shipments were affected immediately after the new system began operating. Our across-the-board effort to get up to speed led to a new 27-year record high for monthly production volume in March 2018. We are continuing to produce at high levels to meet brisk current demand both at home and abroad.
Dec. 06.2018 15:31
Are your order and business trends different from those of machine-tool makers?
Our main business, hoist products can be roughly divided into two groups. Electric products are used mainly in the permanent workplaces of manufacturers and the like, where demand is based in private-sector equipment investment. Manual products are mainly used in temporary workplaces for construction, civil engineering, infrastructure, resource excavation and the like. Demand for electric hoists tends to track a little behind trends in machine-tool orders, because they are used not only on production lines but for wider purposes, like transportation and maintenance of production equipment. Manual hoists are less affected by trends in any specific industry, as they draw a broad range of demand in both public and private sectors.
Nov. 14.2018 17:18
Please summarize the business result for the FY 2018 2nd Quarter ended September 30, 2018.
As a result of high level of production in response to brisk demand, continuing from the previous fiscal year, sales and profit have grown year-on-year. Sales and operating income hit a record high for the 1st half of a fiscal year. We revised full year consolidated forecast upwardly on November 1, projecting a robust demand trend in third quarter and onward. Please refer to https://kito.com/ir/irnews?archive=2018 for more details.
Oct. 30.2018 09:33
Tell us about your effort to hire people with disabilities.
In 2011 we created a master plan for that specific purpose, with the belief that the best social contribution a company can make is creating opportunities. The plan goes beyond achieving numeric goals, to creating a work environment where anyone, regardless of ability or disability of any kind or degree, can feel comfortable working. All of us put our heads together and continue to pool our ideas for further improvement. The results are not just more opportunities for people with disabilities, but higher workplace safety, productivity and morale. For details about our effort, read more at https://kito.com/csr/activity.
Oct. 05.2018 15:23
Of the many plants that Kito operates, what special roles does the Yamanashi Plant play?
The Yamanashi Plant mainly produces hoists that use chain, namely lever hoists, manual and powered chain hoists, our main products. We ship about half the products made there abroad, mainly to North America and Europe. As our mother plant, it takes charge of every production process, from design to development, testing, production of core parts like chain, and final assembly. This comprehensive operation guarantees the safety and durability of the hoists and parts from the design stage up.
Sep. 21.2018 11:03
When will you make your next financial results announcement?
We plan to announce financial results for the second quarter (or the first half, April to September 2018) of the year ending March 2019 at 15:00 (JST)on November 14. We will disclose a tanshin report with explanatory slides in Japanese and English simultaneously. We also plan to have video of the financial briefing a few days later, in both languages.
Sep. 19.2018 13:36
There is a press release titled "Armsel Writes 400-hoist Order for Bangladesh State-run Energy Firm." Tell us more about your operations in India.
Armsel, our Indian subsidiary, joined the Kito Group in 2010. Initially it offered cranes to customers related to infrastructure-building. But in 2017 the firm shifted away from crane production and sales to specialize in import sales of chain hoists and other Kito-brand products. It has expanded sales channels in and outside India to cater to a wide variety of industries, including energy, industrial infrastructure and manufacturing. Read more at https://kito.com/news_post_eng/post_id=3788
Aug. 22.2018 11:03
What are Kito's operations in China?
Two pillars support Kito's Chinese operations. The primary operation is local production and sales of wire-rope hoists in Jiangyin-brand for domestic use, accounting for about 85% of total sales in China. Kito launched its Chinese business in 1995, when the local joint venture was founded, and today our survey data show that they hold 25% of the Chinese market. The other is sales of Japanese imports, accounting for about 15% of sales.
Aug. 10.2018 17:04
Please summarize the business result for the FY 2018 1st Quarter ended June 30, 2018.
Booking has been stable from infrastructure, energy related industries and capital spending as a consequence of the robust demand seen globally. As a result, sales and profits are up across the group. Please refer to https://kito.com/ir/irnews?archive=2018 for more details. Currently we keep a high level of production in response to brisk demand since the previous fiscal year.
Jul. 09.2018 10:00
What are Kito's shares of major world markets?
We enjoy high market share around the world due to the reliable quality of our products, established over our 85-year history. We hold 60% of the market in Japan, 40% in the US and 25% in China, according to our own survey.
Jul. 04.2018 08:30
Tell us about the overseas bases.
Let me frame that with our four product groups. For our core products, namely manual and electric chain hoists and lever hoists, the Yamanashi Plant is in full charge, from parts production to assembly of final products. We have production bases abroad as well, making wire-rope hoists in China, crane systems in Thailand, South Korea and Finland, and chain slings and other accessories in the US, Italy and Australia.
Jul. 04.2018 08:30
To which industries do your users mainly belong? Which industries will drive Kito growth in the future?
Kito products provide solutions to the universal and never-ending human need to lift, transfer and hold heavy loads. They are used in a multitude of industries. Our user base is expanding from heavy industry related to infrastructure to entertainment and clean energy, which are recent additions. So Kito operations are not driven by any specific group of industries, and will continue growing by catering to a broad range of industrial needs.