Rermag 5844 Komatsu D85 18 Ex 1
Rermag 5844 Komatsu D85 18 Ex 1
Rermag 5844 Komatsu D85 18 Ex 1
Rermag 5844 Komatsu D85 18 Ex 1
Rermag 5844 Komatsu D85 18 Ex 1

Komatsu’s Revenues, Profits Decline in Second Quarter

July 29, 2016
Komatsu, the world’s second largest construction equipment manufacturer, posted net income of JY15.6 billion (about U.S. $153 million) compared to JY32.5 billion in the second quarter of 2015, a 52-percent plunge. Sales dropped 13 percent to Y389.3 billion. Despite the decline, Komatsu last week reached a deal to acquire U.S. mining equipment manufacturer Joy Global for $2.89 billion, $3.7 including debt.
Komatsu, the world’s second largest construction equipment manufacturer, posted net income of JY15.6 billion (about U.S. $153 million) compared to JY32.5 billion in the second quarter of 2015, a 52-percent plunge. Sales dropped 13 percent to Y389.3 billion. Despite the decline, Komatsu last week reached a deal to acquire U.S. mining equipment manufacturer Joy Global for $2.89 billion, $3.7 including debt.Sales were heavily impacted by a construction slowdown in China, as well as slower demand in the mining industry. A fall in the price of oil and metals has also affected Komatsu as has a strong yen, which makes its products less competitive internationally.Profits slid 16 percent in Latin America, which is Komatsu’s sixth largest market. One bright spot was the CIS countries, including Russia and former Soviet republics where profits soared 35 percent thanks to a sharp jump in gold mining.Komatsu expects the integration with Joy Global to be smooth. The acquisition signals the company’s expectation in a rebound in the mining business, especially the underground mining space, as Komatsu currently produces only surface mining equipment.For more about Komatsu’s bid to acquire Joy Global, read: http://rermag.com/headline-news/komatsu-acquire-mining-equipment-manufacturer-joy-global-37-billion-deal