Komatsu returns to profit
By Steve Skinner28 July 2009
Komatsu reported first quarter sales of JPY 320 billion (US$ 3.3 billion), down -47.2% on the JPY 606 billion ((US$ 6.3 billion) recorded 12 months ago. Pre-tax profits for the quarter ending June 30 fell by -90.6 % to JPY 8.7 billion (US$ 91 million), down from JPY 92.7 billion (US$ 977 million) for the same period last year.
However, Komatsu returned to profit in the first quarter following a loss three months earlier.
The forecast for the year ending March 31, 2010 remains unchanged, with projected annual sales of JPY 1.5 trillion (US$ 16 billion) and pre-tax profits of JPY 62 billion (US$ 653 million).
"There are some signs of recovery in demand in some limited regions such as China, where large-scale public works began to emerge thanks to the economic stimulus package," said Kunio Noji, president and CEO.
"Demand is nose-diving more than anticipated in Japan and the US, while that in Europe, the Middle East and some other regions remains uncertain," he said.
"Against this background, Komatsu is improving productivity and reducing fixed costs," confirmed Mr Noji.