Komatsu Ltd. last week announced consolidated net sales for fiscal year 2012 decreased by 4.9 percent from the previous fiscal year, to JPY 1,884.9 billion (about U.S. $19.29 billion), and operating income decreased by 17.5 percent to JPY 211.6 billion (U.S. $2.17 billion), which translated into an operating income ratio of 11.2 percent.
While demand for construction equipment increased in North America and Japan, overall demand remained sluggish, mainly affected by delayed recovery of demand in China. Demand for mining equipment remained fairly steady in mines other than coal albeit with some signs of slowdown; however, it dropped in coal mines in Indonesia. As a result, sales and segment profit declined from the previous fiscal year. In the industrial machinery and others business, sales and segment profit decreased from the previous fiscal year, reflecting sluggish demand for wire saws and an end to extraordinary demand for prefabricated shelters in Japan, while sales of large presses and machine tools remained steady.
For the fiscal year ending March 31, 2014, Komatsu projects that consolidated net sales will increase by 8.8 percent from full-year 2012, to JPY 2,050 billion (U.S. $20.98 billion), and operating income by 44.1 percent to JPY 305 billion (U.S. $3.12 billion). As a result, operating income ratio should improve by 3.7 percentage points to 14.9 percent.
While demand for mining equipment is expected to decline, both sales and segment profit for full-year 2013 is expected to increase from full-year 2012, reflecting an increase in demand for construction equipment in Japan and North America; price realization; expanding sales of parts; the Japanese yen's depreciation; and other factors. In the industrial machinery and others business, while sales of presses and machine tools should remain stable, demand for wire saws should remain sluggish. As a result, the company projects both sales and segment profit should decrease slightly from FY2012.
Komatsu Ltd. is planning to set the fiscal year-end cash dividend at JPY 24 per share (U.S. $0.24). As a result, annual cash dividends for the year under review, including the interim cash dividend of JPY24 per share, amount to JPY48 per share.
Komatsu Ltd. is a manufacturer and supplier of construction, mining and compact construction equipment.
