Consolidated Business Results for Nine Months of the Fiscal Year Ending March 31, 2009 (U.S. GAAP)

Komatsu Ltd. announced today its business results for the first nine-month period of the fiscal year ending March 31, 2009. Highlights are described below.

Consolidated net sales for nine months (April 1 - December 31, 2008) of the fiscal year, ending March 31, 2009, increased 0.8% over the corresponding nine-month period a year ago, to ¥1,642.6 billion (US$18,052 million). In the construction, mining and utility equipment business, Komatsu faced a challenging environment of a sharp drop of demand in emerging economies in the second half of the current fiscal year, which had steadily expanded earlier, as the effects of the financial turmoil extended. The environment was further compounded by the Japanese yen�fs substantial appreciation against other currencies, in addition to slack demand remained in Japan, North America and Europe. In the industrial machinery and others business, nine-month sales advanced, as Komatsu NTC Ltd. became a consolidated subsidiary. However, the business environment deteriorated in the second half of the current fiscal year, as automobile manufacturing and other industries rapidly curbed their capital investment.
With respect to profits, while Komatsu worked to absorb increased prices for raw materials with internal efforts, such as increasing selling prices and reducing production costs, the Japanese yen appreciated in addition to a drastic deterioration of the market environment in the second half of the current fiscal year. As a result, operating income declined 17.1% from the corresponding period a year ago, to ¥200.1 billion (US$2,200 million). Similarly, operating income ratio decreased 2.6 percentage points to 12.2%.

On January 23, 2009, Komatsu Ltd. revised the projections for consolidated and non-consolidated results for the fiscal year ending March 31, 2009, which the Company announced on October 29, 2008. For more details, please see the news release of January 23.

Revision of Prejection

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