While demand for mining equipment remained slack in coal and iron ore mines, demand for construction equipment was brisk in Japan, especially against the backdrop of thriving construction investment, and increased steadily in China where it upturned for recovery during the fiscal year under review. In addition, as the Japanese yen depreciated against the U.S. dollar, euro and renminbi, sales of construction, mining and utility equipment increased by 4.3% from the previous fiscal year, to JPY1,752.2 billion. Segment profit improved by 15.9% to JPY242.1 billion.
Segment Profit and Ratio
Sales by Region for the Fiscal Year ended March 31, 2014
( To Outside Customers )
Demand for construction equipment advanced, reflecting an increase in sales as more customers anticipated more stringent emission regulations for the near future. In addition, there were full-scale start-ups of reconstruction projects in the regions destroyed by the Great East Japan Earthquake and tsunami. In particular, demand in rental companies was strong. As a result, sales advanced from the previous fiscal year.
While renewal demand since FY2012 in the rental industry ran its course and demand declined for equipment, especially for use in coal mines, demand grew in the housing sector and infrastructure development, such as highway construction. Sales remained about flat from the previous fiscal year.
While demand remained slack in Germany and Frace, among the major European markets, against the backdrop of the Eurozone crisis, sales increased from the previous fiscal year, reflecting the Japanese yen's depreciation.
While demand for equipment declined for use in copper mines in Chile and Peru, sales increased from the previous fiscal year, reflecting the Japanese yen's depreciation.
Sales declined from the previous fiscal year, adversely impacted by the downturn of demand for equipment for use in gold mines and the energy sector.
Demand, which had been sluggish since FY2011, upturned for recovery in April 2013 and increased for the fiscal year, albeit with some slowdown after the Chinese New Year in January 2014. Komatsu worked to expand sales of the 20-ton class PC200-8M0 hydraulic excavator with improved performance of fuel economy. As a result, sales improved from the previous fiscal year.
In Indonesia, the largest market of Southeast Asia, demand for mining and construction equipment dropped, mainly affected by the sluggish international price of thermal coal and the accelerating depreciation of the Indonesian rupiah since August 2013. As a result, sales declined from the previous fiscal year.
As demand for mining equipment in iron ore mines and that for construction equipment remained slack, sales declined from the previous fiscal year.
As demand for construction equipment grew steadily in some of the Gulf nations, sales advanced from the previous fiscal year.
Komatsu promoted proactive sales and service activities by effectively utilizing information obtained from the KOMTRAX Plus, Komatsu's mining equipment management system, and made good sales in mines in Namibia, in addition to South Africa. As a result, sales advanced from the previous fiscal year.