Recording Over 20% Growth in Sales of Construction and Mining Equipment for Three Consecutive Years

Komatsu Ltd. (President & CEO: Masahiro Sakane) announced today its consolidated business results for the fiscal year ended March 31, 2007.

1. Results for the Forth Quarter of the Fiscal Year Ending March 31, 2007 (from January to March)

Fourth quarter sales of the construction and mining equipment business for the fiscal year ended March 31, 2007 climbed 25% over the same quarter a year ago. Overseas sales registered an impressive increase of 31%. While the market continued to generate strong demand for our equipment, we made good progress in solving the shipping problem which had slowed down our overseas sales until the third quarter. Japanese yen's sharp depreciation particularly against euro was also a plus factor.


2. Results for the Fiscal Year Ending March 31, 2007

For the fiscal year ended March 31, 2007, the Komatsu Group renewed record-high sales and profits, marking the fifth consecutive fiscal year of growth in both sales and profits. Operating income for the year advanced to ¥244.7 billion (US$2,074 million), and operating income ratio improved by 2.8 percentage points to 12.9%.


3. Projections for the Fiscal Year Ending March 31, 2008

Concerning the consolidated business results following the previous fiscal year, the Komatsu Group is working to renew record-high sales, operating income, income from continuing operations before income taxes, minority interests and equity in earnings of affiliated companies, and net income for the year.

4. Cash Dividends
The Company plans to set the year-end dividends per share for the fiscal year ended March 31, 2007, at ¥18, based on its basic policy. It has already paid ¥13 per share for the interim dividends. Therefore, it plans to increase the annual dividends per share by ¥13 to ¥31 compared to ¥18 for the previous year.
Regarding the fiscal year ending March 31, 2008, the Company plans to set the annual dividends per share at ¥36, up ¥5, compared to ¥31 for fiscal year ended March 31, 2007.

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*For further information, please see the PDF file atached right above.