The world’s second largest construction company, Komatsu, has released its results for the fiscal year to March 31, 2016, showing net sales of JPY 1,854.9 billion (US$ 16.69 billion).
The figure represents a fall of 6.3%, compared with the previous fiscal year.
In terms of its construction, mining and utility equipment business, Komatsu reported a total of JPY 1,640.0 billion (US$ 14.76 billion), down 6.9% from the previous year. The company’s profit within this segment declined 19.0%, to JPY 184.1 billion (US$ 1.66 billion).
Komatsu attributed the decline to reduced demand in China and other emerging countries, as well as a fall in sales of mining equipment.
It also reported, however, that it had been successful in capturing demand for general construction equipment in North America.
Nevertheless, operating income decreased 13.8% from the previous fiscal year, to JPY 208.5 billion (US$ 1.88 billion), while income before income taxes and equity in earnings of affiliated companies totalled JPY 204.8 billion (US$ 1.84 billion), down 13.2%.
Net income attributable to Komatsu Ltd. amounted to JPY 137.4 billion (US$ 1.24 billion), down 10.8%.
Looking to the future, and against a backdrop of falling demand for new construction and mining equipment, the company has applied itself to capturing aftermarket demand, reporting record sales of spare parts.
During 2015, with a view to reinforcing its business in Asia, Komatsu also opened a new plant in India for hydraulic excavators, and initiated a manufacturing subsidiary for construction equipment components in Myanmar.