Apr. 27, 2016
Komatsu Ltd. today disclosed its consolidated business results (U.S. GAAP) for the fiscal year ended March 31, 2016 (FY2015) and announced a projection for the current fiscal year ending March 31, 2017 (FY2016). See below for a summary.
1. Results for the Fiscal Year Ended March 31, 2016 (FY2015)
For the fiscal year ended March 31, 2016, consolidated net sales decreased by 6.3% from FY2014, to JPY1,854.9 billion. Operating income declined by 13.8% from FY2014, to JPY208.5 billion. Operating income ratio was 11.2%, down 1.0 point from FY2014. Net income declined by 10.8% from FY2014, to JPY137.4 billion.
In the construction, mining and utility equipment business, while we steadfastly captured demand for construction equipment in North America, both sales and profit declined from FY2014, as affected by declining sales of mining equipment against the backdrop of slack demand as well as drastically reduced demand in China and other emerging countries.
In the industrial machinery and others business, while GIGAPHOTON INC. expanded sales, supported by stable machine utilization of the semiconductor industry, total sales declined due to reduced sales of press and other machines. Segment profit improved.
2. Projections for the Fiscal Year Ending March 31, 2017 (FY2016)
In April this year, Komatsu started a new three-year, mid-range management plan, "Together We Innovate GEMBA Worldwide: Growth Toward Our 100th Anniversary (2021) and Beyond". While Komatsu is going to concert efforts to accelerate the speed of growth especially by expanding IoT (Internet of Things) applications, it projects a decline in both consolidated sales and profits for the fiscal year, ending March 31, 2017, as follows.
In the construction, mining and utility equipment business, while Komatsu will receive benefits from new consolidated subsidiaries, including a distributor in Mexico, which it acquired in FY2015, it projects a decline in both sales and profit, affected by the effects of the Japanese yen's appreciation and decreasing demand for construction and mining equipment.
In the retail finance business, a new operating segment, Komatsu also projects a decline in both revenues and profit, reflecting decreasing assets especially in China and Oceania as well as the effects of the Japanese yen's appreciation.
In the industrial machinery and others business, although Komatsu expects steady sales of presses and machine tools, both sales and profit will decline, as it will sell Komatsu House Ltd., a wholly owned subsidiary.
As preconditions for our projection, we are assuming the foreign exchange rates as follows: USD1=JPY105, EUR1=JPY119 and RMB1=JPY16.2.
3. Cash Dividends
Komatsu Ltd. is planning to set the fiscal year-end cash dividend at JPY29 per share. As a result, annual cash dividends for the year under review, including the interim cash dividend of JPY29 per share, amount to JPY58 per share. (Komatsu Ltd. is planning to propose the fiscal year-end dividend amount to the 147th ordinary general meeting of shareholders scheduled for June 22, 2016.)
Regarding annual cash dividends for the fiscal year ending March 31, 2017, Komatsu Ltd. plans to set the annual cash dividends per share at JPY58, the same amount for the fiscal year ended March 31, 2016. In its new mid-range management plan which began in April this year, Komatsu Ltd. has revised the policy of redistribution, setting the goal of a consolidated payout ratio of 40% or higher and no decrease of dividends, as long as the consolidated payout ratio does not surpass 60%.
No : 014 (2576)
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.
