Komatsu sees +34% growth
By Chris Sleight01 November 2010
Komatsu's sales of mining and construction equipment in the first half of the fiscal year (beginning April 1), were up +34.1% on the same period last year to JPY 763 billion (US$ 9.46 billion). Revenues for the entire Komatsu group were up +33.1% to JPY 859 billion (US$ 10.6 billion) and operating profits rocketed +425% to JPY 104 billion (US$ 1.29 billion).
The company said strong growth in developing Asia and Latin America were key to the increase in sales, helped by a moderate recovery in the more traditional markets of Japan, North America and Europe.
The strongest rise in sales was in the Asia (excluding China & Japan) & Oceania region, where a +55% increase saw revenues rise to JPY 182 billion (US$ 2.25 billion). Komatsu citied rising demand for mining equipment in Indonesia and Australia, along with good general sales in India, Malaysia and Thailand as the key reasons for this.
Elsewhere in Asia, the company's sales in China were up +46% to JPY 153 billion (US$ 1.89 billion), where urbanisation, infrastructure construction and the development of opencast mines are all driving demand for equipment. Indeed, the last six months has seen Komatsu set up Komatsu China Mining Limited, a specialised sales subsidiary to cater for the increased demand for heavy equipment.
In Japan meanwhile, Komatsu's sales rose only +10% to JPY 117 billion (US$ 1.45 billion), with what increases there were focussed on the rental industry.
Outside of Asia, the company saw a +33% rise in sales in the Americas, once again making this region the company's largest at JPY 190 billion (US$ 2.36 billion). The key drivers here included strong demand from the mining industry in Chile, with the civil engineering sector in Brazil also making a contribution.
Elsewhere in the world, sales to Europe and the CIS were up +22% to JPY 71.7 billion (US$ 889 million), while the Middle East & Africa saw a +27% rise to JPY 49.6 billion (US$ 614 million).