Consolidated Business Results for Three Months of the Fiscal Year Ending March 31, 2010 (U.S. GAAP)

Komatsu Ltd. announced today its business results for the first three-month period of the fiscal year ending March 31, 2010. Highlights are described below.

Construction, Mining & Utility Equipment:
Overall demand for construction and mining equipment remained sluggish, except for China with recovery momentum supported by the economic stimulus package and for Indonesia with signs of recovery. First quarter sales dropped 46.7% and segment profit dropped 90.5% from the previous first quarter (April 1 - June 30, 2008), particularly due to the Japanese yen�fs appreciation from the previous first quarter and large-scale adjustment of production continued from last year to improve inventories to appropriate levels. While sales declined 10.0% from the previous fourth quarter (January 1 - March 31, 2009), segment profit turned into the black supported by fixed cost reduction and other efforts.
Industrial Machinery & Others:
Industrial machinery market remained depressed due mainly to capital spending cuts in the automobile and other manufacturing industries. First quarter sales and segment profit declined 49.5% and 39.7%, respectively from the previous first quarter. Although sales declined 43.5% from the previous fourth quarter, segment profit turned into the black supported by reduced fixed costs and gain on reversal of allowance for doubtful receivables.


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