Komatsu reports stable first half

Japanese construction equipment manufacturer Komatsu reported mixed fortunes for the six months to 30 September, and has revised its year-end projections downwards.

The company reported a -0.6% decline in revenues for its first half at JPY 925.1 billion (US$ 9.4 billion), compared with JPY 930.8 billion (US$ 9.5 billion) for the same period in 2012.

Operating income showed a similar decline, down -2.1% to JPY 108.9 billion (US$ 1.1 billion) from last year’s JPY 111.2 billion US$ 1.13 billion).

However, Komatsu did report an increase of +19.2% in net income, which stood at JPY 78.8 billion (US$ 800 million), up from JPY 66.1 billion (US$ 675 million) for H1, 2012.

In its construction, mining and utility equipment division, 
Komatsu said it had worked to compensate for dropped demand for mining equipment by expanding sales of construction equipment in Japan, where demand has been steady, and in China, where it said demand was heading for recovery.

The flat results prompted Komatsu ro revise downwards its projected figures for the year ending March 31, 2014.

The manufacturer said it expects both revenues and profit to come in short of its projections made earilier this year.

The company now projects full-year revenues of JPY 1.860 trillion (US$ 19 billion) and net income of JPY 136 billion (US$ 1.4 billion).