Top Message FAQ policy notes

Questions and Answers at the Conference on Results for FY2010 ended March 31, 2011
(Click the questions for the corresponding answers.)

Q1: To what level have you recovered production since the Great East Japan Earthquake? Are there any possible scenarios in which you won't be able to sustain a normal level of production due to a shortage of parts or electric power as adversely affected by the earthquake?

Q2: With respect to the segment profit of the construction, mining and utility equipment business for the current fiscal year ending March 31, 2012, you are projecting that the total difference in selling prices, production costs, materials prices, etc. will be plus 25 billion yen from the fiscal year just ended. Please give me the breakdown of this growth.

Q3: Concerning your projection for the current fiscal year ending March 31, 2012, if the Japanese yen appreciates against the U.S. dollar more than your assumed precondition, how much will your operating profit be affected?

Q4: You are expecting that fixed costs, R&D expenses and cpital investment will increase somewhat for the current fiscal year from the fiscal year just ended. Please tell us about the background for this projection.

Q5: If wages of your Chinese operations increase, will your business results be affected?

back to top Q1
To what level have you recovered production since the Great East Japan Earthquake? Are there any possible scenarios in which you won't be able to sustain a normal level of production due to a shortage of parts or electric power as adversely affected by the earthquake?

A1
Although we stopped production at some of our plants after the earthquake, our maintenance people from the Awazu, Osaka and other plants rushed to the affected plants and suppliers' locations and worked to recover their production the day after the natural disaster. Thanks to their professional support efforts, those affected plants resumed production by the end of March, and therefore all our plants are back to full production today. With respect to our procurement of parts, I don't think that we will experience any adverse effects into the future because we are utilizing our stock and changing the designs. Also, concerning the possibilities of a power shortage of Tokyo and Tohoku Electric Power Companies in the coming summer season, we should be able to cut power consumption by 30% of our daily peak use while sustaining our production by utilizing our in-house power generation and other facilities.

back to top Q2
With respect to the segment profit of the construction, mining and utility equipment business for the current fiscal year ending March 31, 2012, you are projecting that the total difference in selling prices, production costs, materials prices, etc. will be plus 25 billion yen from the fiscal year just ended. Please give me the breakdown of this growth.

A2
With respect to our selling prices, we are planning to increase them at the same level of increase as we did in the last fiscal year. We are also planning to continue our efforts to reduce production costs through the ongoing reduction project in China and other means. Of course, we are expecting that steel prices will increase and the market introduction of Tier 4 models will be an additional cost. By totaling the subtractions and additions, we should be able to make this category plus 25 billion yen.

back to top Q3
Concerning your projection for the current fiscal year ending March 31, 2012, if the Japanese yen appreciates against the U.S. dollar more than your assumed precondition, how much will your operating profit be affected?

A3
We are anticipating that a one-yen appreciation will translate into a minus 4.5billion yen for the full year.

back to top Q4
You are expecting that fixed costs, R&D expenses and cpital investment will increase somewhat for the current fiscal year from the fical year just ended. Please tell us about the background for this projection.

A4
For the full three years of the ongoing mid-range management plan, we had planned to increase fixed costs by about 15 billion yen, centering on R&D expenses. However, as we are projecting now that global demand for construction equipment will recover one year earlier than our projection, we are planning to increase fixed costs according to this market growth. With respect to capital investment, we are planning to invest in not only production of components and parts in particular but also development-related tests and research.

back to top Q5
If wages of your Chinese operations increase, will your business results be affected?

A5
We have raised the wages of Komatsu Group employees, including those of our suppliers, to the top standard of the corresponding regions of China. As we have made good progress in our production cost reduction project, I believe we should be able to absorb an increase of wages easily with reduced production costs. We are planning to maintain the top wage level in all regions where we operate in China.

back to top

back to top

Terms and Conditions    Inquiry    Site map