2016Consolidated Business Results for Six Months of the Fiscal Year Ending March 31, 2017 (U.S.GAAP)
Oct. 28, 2016
Komatsu Ltd. today announced its consolidated business results for Six Months of the Fiscal Year Ending March 31, 2017 (U.S. GAAP). The highlights are described below.
1. Results for Six Months of the Fiscal Year Ending March 31, 2017 (FY2016)
For the first six-month period (April 1 - September 30, 2016) of the fiscal year ending March 31, 2017, consolidated net sales totaled JPY796.1 billion, down 10.8% from the corresponding period a year ago. In the construction, mining and utility equipment business, the first six-month sales decreased from the corresponding period a year ago, while Komatsu steadfastly captured demand for construction equipment in North America and Europe in Traditional Markets and also in CIS and China, where sales improved on a local currency basis. The decrease was due to the Japanese yen's appreciation and slack demand for construction and mining equipment in Strategic Markets, such as the Middle East, Africa 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 mainly by the Japanese yen's appreciation, changes in the geographic mix and inventory write-off of remanufactured/rebuilt parts recorded for the first three-month period. As a result, operating income dropped by 35.2% from the corresponding period a year ago, to JPY64.1 billion. The operating income ratio translated into 8.1%, down 3.0 percentage points. Income before income taxes and equity in earnings of affiliated companies totaled JPY58.0 billion, down 40.6%. Net income attributable to Komatsu Ltd. amounted to JPY37.5 billion, down 42.4%.
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.
- The information described is at the time of presentation and may be subject to advance notice.