Komatsu sales dropped 38% in the third quarter to $5.8 billion. North American sales rose 0.2% to about $1.5 billion. The Japan-based company cited appreciation of the Japanese yen for the sales decline. Excluding foreign exchange effects, sales were down 15.4%.
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For the first six months of its current fiscal year, sales were $12.8 billion, down 3.9%. Sales of construction and mining equipment dropped 4.8% to about $11.9 billion.
In its full-year projections, Komatsu expects sales to decline by 5.3% to about $25 billion. It expects tariffs to continue to affect sales and profits. Full year expectations are for tariffs to cost the company $500 million, placing a $50 million drag on profits for the year. “The impact is expected to increase progressively toward the end of the year,” according to the company.
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Rod Sutton
Sutton has served as the editorial lead of Construction Equipment magazine and ConstructionEquipment.com since 2001.
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