Japan: Komatsu Posts Results for Fiscal Year 2011
Komatsu Ltd. today disclosed its consolidated business results (U.S. GAAP) for the fiscal year ended March 31, 2012 (FY2011) and announced a projection for next fiscal year.
Results for the Fiscal Year Ended March 31, 2012 (FY2011)
For the fiscal year ended March 31, 2012, consolidated net sales increased by 7.5% from the previous year, to JPY1,981.7 billion (USD24,168 million at USD1=JPY82), and operating income increased by 15.0% to JPY256.3 billion (USD3,126 million), which translated into an operating income ratio of 12.9%, an improvement of 0.8 percentage points from the previous fiscal year.
In the construction, mining and utility equipment business, the adverse effects of plunged demand in China and the Japanese yen’s appreciation were compensated for by expanded sales of construction equipment in other regions and of mining equipment and parts, as well as improved selling prices and reduced costs. As a result, Komatsu increased both sales and profits. Segment profit ratio also advanced to 14.1%, up 0.5 percentage points from the previous fiscal year. In the industrial machinery and others business, the adverse effects of the nose-dived demand for high-margin wire saws were compensated for mainly by expanded sales of presses and machine tools, as well as the new addition of Gigaphoton Inc. as a consolidated subsidiary. However, while sales increased, profits decreased.
Projections for the Fiscal Year Ending March 31, 2013 (FY2012)
For the fiscal year ending March 31, 2013, Komatsu is projecting that consolidated net sales will increase by 6.0% from FY2011, to JPY2,100.0 billion, and operating income by 22.9% to JPY315.0 billion. As a result, Komatsu should be able to achieve an operating income ratio of 15.0%, the target figure of the ongoing mid-range management plan. In particular, Komatsu is anticipating that both sales and profits will continue to improve in the construction, mining and utility equipment business against the backdrop of growing demand for construction equipment in Japan and North America coupled with a promising increase in sales of equipment and parts as well as service revenues in the mining equipment business, a high-margin business domain. Komatsu is expecting to achieve a record-high segment profit (JPY320.0 billion) and segment profit ratio (16.9%).
Dredging Today Staff, April 26, 2012; Image: komatsu