Recod-high performance continued for FY2007 ended March 31, 2008 and the fifth cosecutive record-high profits projected for next fiscal year

Komatsu Ltd. (President & CEO: Kunio Noji) announced today its business results for FY2007 ended March 31, 2008.

1. Results for the Fiscal Year Ended March 31, 2008
For the fiscal year ended March 31, 2008, the Komatsu Group (hereinafter "Komatsu") renewed record-high sales and profits, marking the sixth consecutive fiscal year of growth in both sales and profits.
Consolidated net sales reached ¥2,243.0 billion (US$22,430 million). In the construction and mining equipment segment, Komatsu boosted sales by steadily capitalizing on expanded demand against the backdrop of thriving resource development around the world and infrastructure development particularly in emerging powers. Komatsu also expanded sales of forklift trucks and industrial machinery, reflecting buoyant capital investments in Japan and overseas.
Operating income for the year increased to ¥332.8 billion (US$3,329 million), and operating income ratio improved 1.9 percentage points over the previous fiscal year, to 14.8%. Operating income improved 36.0% due not only to expanded sales, centering on construction and mining equipment, but also to the successful realization of prices for construction and mining equipment in Japan and overseas. Income from continuing operations before income taxes, minority interests and equity in earnings of affiliated companies reached ¥322.2 billion (US$3,222 million). Net income for the year, the sum of income from continuing and discontinued operations, advanced to ¥208.7 billion (US$2,088 million).

2. Projections for the Fiscal Year Ending March 31, 2009 (From April 1, 2008 to March 31, 2009)
There are some factors of concern such as an increase in prices of raw materials in addition to slack demand for construction equipment in the United States. Komatsu, however, projects that thriving demand for construction and mining equipment should remain at a high note, particularly in emerging powers. In response to such an environment, Komatsu will expand its production capacity and work to further improve profits especially by launching new products and realizing prices. In the industrial machinery market, Komatsu also anticipates an expansion in sales not only against the backdrop of buoyant capital investments, especially in emerging powers, but also reflecting contributions of NIPPEI TOYAMA as a newly consolidated subsidiary. By taking these above factors into account, Komatsu is looking forward to renewing 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, following the previous fiscal year.

3. Dividends
The Company plans to set the year-end dividends per share for the fiscal year ended March 31, 2008, at ¥22, based on its basic policy. It has already paid ¥20 per share for the interim dividends. Therefore, it plans to increase the annual dividends per share by ¥11 to ¥42 compared to ¥31 for the previous year.
Regarding the fiscal year ending March 31, 2009, the Company plans to set the annual dividends per share at ¥44, up ¥2, compared to ¥42 for fiscal year ended March 31, 2008.

*For the detailed information, please see the PDF file attached on the right above on this page.