Komatsu cuts sales forecast by 6.5%

Komatsu Ltd has revised downwards by 6.5% its sales forecast for the year to 31 March 2010. The company said market conditions in Japan, North America and Europe were likely to be more challenging that previously forecast.

The company said consolidated sales were now likely to be Yen 1430000 million (€10.7 billion), compared to the earlier estimate of Yen 1530000 million (€11.4 billion). The new forecast is 30% lower than the results for the year to March 2009.

Komatsu said it net profit forecast was unchanged at Yen 35000 million (€261 million), with the group "working harder...to reduce fixed and production costs".

"In the construction, mining and utility equipment business, recovery of the Chinese market became clearly evident and signs of market recovery began to emerge in Indonesia and India", said Komatsu, "Meanwhile, we are assuming that market conditions in Japan, North America and Europe will become more challenging than we estimated earlier."

The company also said it was expanding the production capacity of its Shonan Plant in Hiratsuka, Kanagawa, Japan, which makes key components for the PC200-8 Hybrid hydraulic excavator. Komatsu said it was now able to produce up to 100 units per month.

At the same time, in Europe Komatsu has appointed Hesselberg Maskin AB as its new dealer for Sweden, replacing Swelog HB. Hesselberg Maskin is owned by AS Sigurd Hesselberg, Komatsu's Norwegian distributor since 1974.

Lars Häggström, president for the past five years of Sandvik Mining and Construction Sverige AB, will be chief executive officer of Hesselberg Maskin.