May 18, 2020
Komatsu Ltd. today announced its consolidated business results for the fiscal year ended March 31, 2020 (U.S. GAAP). The highlights are described below.
1. Results for the Fiscal Year Ended March 31, 2020(FY2019)
For the fiscal year under review (April 1, 2019 – March 31, 2020), the first year of the mid-term management plan,“DANTOTSU Value - FORWARD Together for Sustainable Growth”, consolidated net sales totaled JPY 2,444.8 billion, down 10.3% from the previous fiscal year. In the construction, mining and utility equipment business, demand declined in Strategic Markets, centering on Asia, and in some other regions, as adversely affected by the coronavirus (COVID-19) pandemic in the fourth quarter. As a result, sales decreased from the previous fiscal year. In the industrial machinery and others business, demand for presses and machine tools fell in the automobile manufacturing industry and against the spread of coronavirus infections. Demand for Excimer laser-related products also decreased on the semiconductor market. As a result, sales dropped from the previous fiscal year.
With respect to profits for the fiscal year under review, while Komatsu worked to improve selling prices, operating income dropped by 37.0% from the previous fiscal year, to JPY 250.7 billion. This was mainly due to reduced sales volume, as partially affected by the coronavirus (COVID-19) pandemic, a change in the geographic composition of sales, and adverse effects of the Japanese yen’s appreciation. The operating income ratio decreased by 4.3 percentage points to 10.3%. Income before income taxes and equity in earnings of affiliated companies fell by 40.9% to JPY 223.1 billion. Net income attributable to Komatsu Ltd. totaled JPY 153.8 billion, down by 40.0%.
2. Projection for the Fiscal Year Ending March 31, 2021 (FY2020)
As of today, it is impossible to predict the end of the coronavirus (COVID-19) pandemic. Concerning the projection of consolidated business results for the fiscal year ending March 31, 2021, it is difficult for Komatsu to calculate them in an appropriate and rational manner, so they remain undecided as of now. Komatsu will disclose them as soon as it becomes possible to calculate them in the future.
3. Cash Dividends
Concerning annual cash dividends for the fiscal year under review, Komatsu Ltd. is planning to pay JPY 94 per share by reviewing the business results for the fiscal year under review, as well as current and future business prospects. The consolidated payout ratio will become 57.7%, as Komatsu Ltd. maintains its earlier projection. As Komatsu Ltd. has already paid the interim dividend of JPY 55 per share, the year-end cash dividend will be JPY 39 per share, JPY 16 per share short of the latest plan. This dividend amount will be proposed to the 151st ordinary general meeting of shareholders (scheduled for June 18, 2020).
Regarding annual cash dividends for the fiscal year ending March 31, 2021, Komatsu has not planned the amount, because it is very difficult to project its consolidated business results for that year as of now. When Komatsu becomes able to announce its projection of consolidated business results, it will also disclose its planned amount of annual cash dividends.
No : 0012(2943)
Corporate Communications Department
Sustainability Promotion Division
Komatsu Ltd.
tel: +81-(0)3-5561-2616
mail: JP00mb_cc_department@global.komatsu
*The information described is at the time of presentation and may be subject to advance notice.
