Komatsu Ltd has announced its consolidated business results for the three months of the fiscal year ending 31 March 2017 (FY2016).
For the first three-month period (1 April 1 – 30 June 2016) of the fiscal year ending 31 March 2017, consolidated net sales totalled JPY389.2 billion, down 12.7% from the corresponding period a year ago.
In the construction, mining and utility equipment business, while Komatsu steadfastly captured demand for construction equipment in North America and Europe among traditional markets, sales declined from the corresponding period a year ago. The company reported this to be due to being affected by the Japanese yen's appreciation and reduced volume of sales of construction and mining equipment and parts against the backdrop of slack demand, especially in strategic markets, such as the Middle East and Indonesia.
Consolidated net sales for Komatsu’s construction, mining and utility equipment for three months ended 30 June 2016 came in at 345.1 billion yen, whereas it was 392.3 billion yen for the same period in 2015 – decreasing 12%.
In the retail finance business, revenues decreased from the corresponding period a year ago, affected by the Japanese yen's appreciation and a decline of assets, mainly in China and Oceania.
In the industrial machinery and others business, sales declined from the corresponding period a year ago, affected by reduced sales of presses and machine tools, especially to the automobile manufacturing industry.
With respect to profits, Komatsu continued to cut down fixed costs and improve selling prices. However, profits were adversely affected by one-time factors of inventory write-off of remanufactured/rebuilt parts and an additional allowance for bad debts recorded in the retail finance business in China, both in the first three-month period.
Komatsu also weathered the Japanese yen's appreciation against major currencies and reduced volume of sales in the construction, mining and utility equipment business. As a result, operating income dropped by 40.1% from the corresponding period a year ago, to JPY29.7 billion. The operating income ratio translated into 7.7%, down 3.4 percentage points. Income before income taxes and equity in earnings of affiliated companies totalled JPY24.2 billion, down 52.5%. Net income attributable to Komatsu Ltd. amounted to JPY15.5 billion, down 52.1%.
In the company’s projections for the fiscal year ending 31 March 2017 (FY2016), Komatsu has made no changes to its projections in regards to its consolidated business results.
Read the article online at: https://www.worldcoal.com/mining/28072016/komatsu-construction-mining-and-utility-equipment-down-from-a-year-ago-2102/