Third Quarter Results Confirm Momentous Improvement in Profits

Komatsu announced today its consolidated business results for nine months of the fiscal year ending March 31, 2006 (U.S.GAAP).

For the 9-month period of the fiscal year, ending March 31, 2006, Komatsu posted consolidated net sales of ¥1,224.0 billion, up 18.3% over the previous corresponding period. Operating profit for the period climbed 71.4%, to ¥121.4 billion, while net income reached ¥83.7 billion, registering a double increase of 100.7%. These figures represent expanded sales and profits for four consecutive 9-month periods.
In addition to impressive improvement in performance of our mainstay business of construction and mining equipment as well as business of industrial machinery, vehicles and others, our electronics business also improved its results from the 9-month period last year, driven by good performance of the silicon wafer business. As a result, all our business segments achieved growth in both sales and profits for the 9-month period under review.

Notes
1) Percentages shown in net sales, operating profit, income before income taxes and net income represent the rates of change compared with the corresponding nine months a year ago.
2) Operating profit stated hereafter is the sum of segment profit (net sales less cost of sales and selling, general and administrative expenses). It conforms to Japanese accounting principles, and does not represent consolidated operating profit under U.S.GAAP.

*Announced on November 1, 2005

*For further information, please refer to the linked PDF files shown on top right of the screen.