Jul. 28, 2016
Komatsu Ltd. today announced its consolidated business results for Three Months of the Fiscal Year Ending March 31, 2017 (U.S. GAAP). The highlights are described below.
1. Results for Three Months of the Fiscal Year Ending March 31, 2017 (FY2016)
For the first three-month period (April 1 - June 30, 2016) of the fiscal year ending March 31, 2017, consolidated net sales totaled JPY389.2 billion, down 12.7% from the corresponding period a year ago. In the construction, mining and utility equipment business, while Komatsu steadfastly captured demand for construction equipment in North America and Europe among Traditional Markets, sales declined from the corresponding period a year ago, as affected by the Japanese yen's appreciation and reduced volume of sales of construction and mining equipment and parts against the backdrop of slack demand, especially in Strategic Markets, such as the Middle East and Indonesia. In the retail finance business, revenues decreased from the corresponding period a year ago, affected by the Japanese yen's appreciation and a decline of assets, mainly in China and Oceania. In the industrial machinery and others business, sales declined from the corresponding period a year ago, affected by reduced sales of presses and machine tools, especially to the automobile manufacturing industry.
With respect to profits, Komatsu continued to cut down fixed costs and improve selling prices. However, profits were adversely affected by one-time factors of inventory write-off of remanufactured/rebuilt parts and an additional allowance for bad debts recorded in the retail finance business in China, both in the first three-month period. Komatsu also weathered the Japanese yen's appreciation against major currencies and reduced volume of sales in the construction, mining and utility equipment business. As a result, operating income dropped by 40.1% from the corresponding period a year ago, to JPY29.7 billion. The operating income ratio translated into 7.7%, down 3.4 percentage points. Income before income taxes and equity in earnings of affiliated companies totaled JPY24.2 billion, down 52.5%. Net income attributable to Komatsu Ltd. amounted to JPY15.5 billion, down 52.1%.
2. Projections for the Fiscal Year Ending March 31 2017 (FY2016)
Komatsu makes no change in the projection of April 27 2016 concerning consolidated business results for the fiscal year ending March 31 2017.
No : 039 (2601)
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.
