Komatsu sales down, but focus is future growth
29 January 2016
Komatsu’s consolidated net sales for the nine-month period from April 1 to December 31, 2015, totalled JPY 1.37 trillion (US$ 11.3 billion), down 4.6% from the corresponding period in 2014.
According to the report, Komatsu’s overall sales in North American had decreased, due to the decline in demand for mining equipment, but the company insisted it had captured construction equipment demand during the reporting period.
This sector, Komatsu said, had also seen “drastically reduced demand” from China and many emerging markets.
Of its peripheral businesses, while sales for laser technology company Gigaphoton Inc increased, overall sales declined.
In an effort to reduce its fixed costs, and in the face of reduced demand for both construction and mining equipment, Komatsu stated it has instituted structural reforms on a global scale.
Nonetheless, the company’s operating income fell by 15.0%, compared with the corresponding reporting period in 2014, to JPY 154.6 billion ($ 1.272 billion), while pre-tax income and the equity in earnings from affiliated companies totalled JPY 154.1 billion ($ 1.268 billion).
Net income for the company amounted to JPY 103.7 billion ($ 853 million), down 11.0%.
In its report, Komatsu said it is continuing to focus its efforts on a three-year plan for growth, based on innovation, existing businesses and structural reforms.