2020Coronavirus (COVID-19) Effects on Komatsu Group’s Business (2)
Apr. 9, 2020
In compliance with the policies of host governments of countries where we, the Komatsu Group, conduct business, we are making our utmost efforts to prevent COVID-19 from spreading. We place top priority on the health and safety of our customers, local community residents and employees.
Komatsu Group companies in Japan are engaged in business in compliance with the Japanese government and related prefectural governments. Based on the state of emergency declared by the Japanese government on April 7, we have ordered our employees, who are working for bases in the emergency-designated prefectures, including the Tokyo Metropolitan Area, to engage in teleworking as a general rule. Concerning our production bases (plants), we will conduct business according to the guidelines defined by the concerned prefectural governments. Specifically, we are limiting the work of those employees directly engaging in production to taking infection-preventive measures (fever checks, no use of public transportation, and the avoidance of crowded places, such as locker rooms) before starting work.
In this release, we revise some information in “Coronavirus (COVID-19) Effects on Komatsu Group’s Business (1)” of March 25 and provide the latest information.
1.Effects on production and sales
We have worked on the global cross-sourcing and procurement of finished products and parts in order to absorb the impact of changes in market demand and foreign exchange rates. Please be advised that we have renewed the conditions of halting production at some plants as described in the table below. We are working to minimize the effects on production by means of alternative procurement and inventory reallocation. Concerning the production bases other than those listed below, we comply with the guidelines of concerned governments, implement infection-preventative measures, and operate them under normal conditions.
[Conditions of main production bases by region] (As of April 9, 2020)*1
*1 Bases as affected by haling operations are described below. (Renewed)
In the regions under the regulations issued by different governments of the world, we have seen the effects of the pandemic, such as suspension of business by customers. With respect to sales, a growing number of our distributors, centering on Americas, Europe and Asia, are promoting teleworking of their employees. To ensure a continuing supply of products and spare parts to customers, we are implementing such measures as the reassessment of supply routes and shift work.
2．Effects on business results
Consolidated business results for FY2019 (ending March 31, 2020), projected on October 30, 2019*2, include no impact of the coronavirus pandemic. We will disclose any considerable effects as soon as we become aware of them.
As different governments around the world are strengthening their regulations, such as strict curfews, we are working to ensure sufficient time to engage in stringent financial closing and auditing and emphasizing the health and safety of all employees of the Komatsu Group and the contracted accounting firm’s employees, who are involved in financial closing of the fiscal year. Accordingly, we have changed the date of announcing our financial results to May 18 from April 30, 2020.
*2 We did not change this projection when we announced our business results for nine months of FY2019 on January 31, 2020.
- The information described is at the time of presentation and may be subject to advance notice.