Sales of the construction, mining and utility equipment business amounted to JPY 1,641.0 billion, down 6.9% from the previous fiscal year. Segment profit declined by 19.0% to JPY 184.1 billion.
While continuing to face a challenging business environment, characterized by a drastic drop in demand for mining equipment and sluggish demand for construction equipment in emerging countries, Komatsu promoted SMARTCONSTRUCTION, a solutions business designed to realize “construction jobsites of the future”, mainly in Japan. With respect to intelligent Machine Control construction equipment, Komatsu launched it in Australia, following Japan, North America and Europe. Komatsu also broadened its model range during the year. As for products designed to comply with new emission standards, Komatsu has developed a total of 33 models and worked to expand their sales.
In the after-market business, Komatsu steadfastly captured demand, thereby achieving the record-high sales of spare parts for the year under review, renewing the previous record-high figure a year ago.
To reinforce operations in Asia, Komatsu opened a new assembly plant for hydraulic excavators in India and a new base for the remanufacturing of components and production of generators in Myanmar. In Mexico, an important market for its business, Komatsu acquired a local distributor in order to handle both construction and mining equipment businesses.