Consolidated Financial Statement for the Second Quarter Period Ended September 30. 2011

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1. Consolidated business results for the second quarter period from April 1, 2011 to September 30, 2011 (cumulative) 

Notes: Listed values less than one million yen are rounded off. 
Percentage figures represent comparisons to the first quarter period of the previous fiscal year.

2. Outlook for consolidated business performance for the fiscal year from April 1, 2011 to March 31, 2012

Note: Percentage figures represent comparisons to the same period of the previous fiscal year.

Explanation concerning appropriate use of result forecasts and other matters of note:
The projections above are based on certain premises derived from information that has been available as of the day this material was released. The actual results may materially differ from the forecasts as a result of various unforeseen factors that may arise.

3. Qualitative information regarding consolidated business results

During the second quarter under review, despite persisting harsh conditions following the Great Tohoku Earthquake, the Japanese economy continued to recover from the precipitous earthquake-induced downturn. Positive signs included recovery in production and exports, as supply chains were reestablished, and a gradual increase in capital investment. 

In our industry, while domestic production of mobile cranes began to grow following a temporary decline attributable to parts procurement difficulties, this proved insufficient to meet replacement demand due to deterioration. In overseas markets, demand in Europe remained remarkably weak, while demand in North America, Central and South America, the Middle East, and other regions grew significantly.

In the first quarter, the effects of the Great Tohoku Earthquake on the Tadano Group forced the temporary shuttering of production lines at the Shido Plant, due to difficulties with parts procurement, which affected sales of mobile cranes. Additionally, delays in the delivery of trucks due to production declines at truck makers in Japan temporarily affected sales of truck loader cranes and the production of aerial work platforms. The Group devoted its combined strength to offsetting these delays in production and sales, resulting in greater sales than anticipated in the second quarter. 

Domestic sales rose by 12.3% from the same period of the previous fiscal year to 26,142 million yen. Sales of truck loader cranes and aerial work platforms grew, although sales of mobile cranes remained largely unchanged. As demand recovered, overseas sales rose by 34.5% from the same period of the previous fiscal year to 24,272 million yen, despite intensifying competition under the influence of the strong yen. Total sales grew by 22.0% to 50,415 million yen. The ratio of overseas sales to total sales was 48.1%. 

Due to higher gross profits generated by higher sales and decreased costs as well as continuing efforts to cut labor and overhead costs, we recorded operating income of 2,193 million yen (vs. an operating loss of 2,285 million yen for the same period of the previous fiscal year. Net income for the quarter was 1,131 million yen (vs. a net loss of 2,950 million yen for the same period of the previous fiscal year).