Komatsu sales down 12.7% in first quarter
28 July 2016
Results for first three months of trading (to June 30, 2016), of the fiscal year, ending March 31, 2017.
Net sales totalled JPY 389.2 billion (US$ 3.72 billion) – down 12.7% on the same period in 2015.
Operating income fell 40.1% from the same period in 2015, to JPY 29.7 billion (US$ 284 million), while EBITDA totalled JPY 24.2 billion (US$ 231 million), down 52.5%.
Net income attributable to Komatsu Ltd, totalled JPY 15.5 billion, down 52.1%.
The company claims to have captured demand in North America and Europe, but admitted a reduced volume of sales, due to slack demand in the construction and mining equipment sectors, and the appreciation of the Japanese yen.
The declining demand was felt keenly by Komatsu in the strategic markets of the Middle East and Indonesia.
The company said it was continuing to reduce its fixed costs and improve its selling prices, but its profits were adversely affected by, among other factors, a number of bad debts from its retail finance business in China.
Earlier this month, Komatsu announced it was acquiring US mining equipment firm Joy Global Inc, although the company stated it does not anticipated the acquisition impacting on its consolidated full-year business results for 2016.
