Komatsu Ltd. today announced its consolidated business results for three months of the fiscal year ending March 31, 2013. The highlights are described below.
For the first quarter (three months from April 1 to June 30, 2012), consolidated net sales declined by 4.9% from the corresponding period a year ago, to JPY469.9 billion. In the construction, mining and utility equipment business, while sales of mining equipment and its parts and service advanced, those of construction equipment dropped to about half in China. In addition, the Japanese yen appreciated against the U.S. dollar and Euro more than the corresponding period a year ago. As a result, first-quarter sales declined from the corresponding period a year ago. In the industrial machinery and others business, sales of wire saws for use in slicing silicon ingots for the solar cell market sharply declined. As a result, first-quarter sales declined from the corresponding period a year ago. First-quarter profits were adversely affected by declined volume of sales coupled with higher appreciation of the Japanese yen against the U.S. dollar and Euro compared to the corresponding period a year ago. Operating income for the first quarter declined by 18.5% to JPY55.7 billion, which translated into an operating income ratio of 11.9%, a decline of 1.9 points. Net income attributable to Komatsu Ltd. amounted to JPY32.1 billion, down 42.3%.
In the construction, mining and utility equipment business, we have considered the following major risks of demand downturns. The recovery of Chinese demand is slower than initially projected. Indonesian demand for mining equipment is softening mainly against the backdrop of falling prices of thermal coal. In the industrial machinery and others business, we are facing the market conditions, which are more challenging than initially anticipated, of wire saws for use in slicing silicon ingots for the solar cell market. In addition to these market conditions, we have also considered adverse effects of the Japanese yen's appreciation on business results. Accordingly, we have revised our projections of April 26, 2012 concerning sales and profits of consolidated business results for the full fiscal year (April 1, 2012 – March 31, 2013).
Concerning the foreign exchange rates, which are preconditions for our current projections, we have assumed them as follows: USD1=JPY79, EUR1=JPY99 and RMB1=JPY12.6.
Information in the news releases is current on the date of the announcement and is subject to change without notice.
KOMATSU Corporate Communications