Komatsu Revises Forecast Down After First Half

October 30, 2013

Komatsu reported a decline in net sales of 0.6 percent in the first half of fiscal year ended Sept. 30, 2013, compared to the same period in 2012. Revenues totaled JPY 925.1 billion ($9.4 billion) in 2013, compared with JPY 930.8 billion ($9.5 billion) in 2012.

Operating income for the first half decreased by 2.1 percent, to JPY 108.9 billion ($1.1 billion) from JPY 111.2 billion ($1.13 billion) in 2012.

Net income rose 19.2 percent, from JPY 66.1 billion ($675 million) in 2012 to 78.8 billion ($800 million) for 2013.

Komatsu worked to compensate for dropped demand for mining equipment by expanding sales volume of construction equipment in Japan where demand has been steady and in China where demand has upturned for recovery. However, both sales and segment profit decreased.

Both sales and segment profit increased in industrial machinery and others, supported by steady sales of sheet-metal and press machines, including large presses.

Komatsu revised down its projected figures for the fiscal year ending March 31, 2014. The company expects full-year revenues of JPY 1.86 trillion ($19 billion) and net income of JPY 136 billion ($1.4 billion).