JAPANESE

Komatsu Renews Record Highs

Komatsu announced today its consolidated business results for the fiscal year ended March 31, 2006.


1.Highlights of the Year under Review and Outlook for Next Fiscal Year

Consolidated business results of the Komatsu Group for the fiscal year ended March 31, 2006 continued to renew the record-high sales and profits, marking the fourth consecutive year of improvements in both sales and profits. The Komatsu Group also improved operating profit ratio to 10.4% for the year, achieving the goal of 10% a year ahead of schedule.
Consolidated sales of construction and mining equipment expanded 21.7% over the previous year, to ¥1,291.2 billion. Overseas sales totaled ¥1,016.4 billion for the year, topping the 1 trillion mark for the first time, driven by expanded sales in all regions of the world, especially in the world's largest market of the United States, China and other emerging markets where demand continued to recover.
Consolidated sales and profits also increased in the industrial machinery, vehicles and others as well as electronics segments.
The Komatsu Group anticipates that both sales and profits will continue to expand for next fiscal year ending March 31, 2007.


Cash Dividends

Komatsu Ltd. plans to set the annual dividends per share at ¥18 with an increase of ¥2 from the earlier announcement of ¥16 made in November 2005. Concerning annual dividends per share for next fiscal year ending March 31, 2007, the Company looks for ¥24 with an increase of ¥6, which will represent the fourth consecutive annual increase.


Consolidated Financial Highlights(For the fiscal years ended March 31, 2006 and 2005)


Notes:
1) Consolidated financial information is prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America.
2) The translation of Japanese yen amounts into US dollar amounts hereafter is included solely for convenience and has been made for the fiscal year ended March 31, 2006 at the rate of ¥117 to $1, the approximate rate of exchange at March 31, 2006.
3) Equity in earnings of affiliated companies:
2006:2,705 millions of yen
2005:939 millions of yen
4) The numbers of average common shares outstanding were as follows:
2006:992,733,616 shares
2005:991,662,555 shares
5) Accounting policies were not changed.
6) Net income per share above is based on the provisions of Statements of Financial Accounting Standards No.128, "Earnings per share."
7) 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.


2. Projections for the Fiscal Year Ending March 31, 2007(From April 1, 2006 to March 31, 2007)


Notes:
1) Forecast of net income per share (basic) of the entire fiscal year: 120.77 yen
2) Refer to "Management Performance and Financial Conditions" for preconditions of the projections above and other related issues.


Information in the news releases is current on the date of the announcement and is subject to change without notice.

2006/04/27

KOMATSU Corporate Communications
TEL: 03(5561)2616

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