Revision of Projections for the Fiscal Year Ending March 31, 2010 (Consolidated and Non-consolidated)

Komatsu Ltd. (President & CEO: Kunio Noji) has revised the projections for consolidated and non-consolidated results for the fiscal year ending March 31, 2010, which the Company announced on April 27, 2009.

<Reasons for the Revision>
In the construction, mining and utility equipment business, recovery of the Chinese market became clearly evident and signs of market recovery began to emerge in Indonesia and India. Meanwhile, we are assuming that market conditions in Japan, North America and Europe will become more challenging than we estimated earlier. All combined, we are projecting that net sales for the fiscal year ending March 31, 2010 will be smaller than our projection of April 27, 2009. With respect to profits, we are anticipating that we should be able to keep the same figures as projected by working harder as the entire Komatsu Group to reduce fixed and production costs.
As preconditions for our current projections, we are assuming the foreign exchange rates in the third and fourth quarters as follows: USD1 = JPY95 and EUR1 = JPY125. With respect to the average rates for the full year, we are keeping the same figure for the U.S. dollar as our earlier projection (USD1 = JPY95), but for the euro, we have changed to EUR1 = JPY129 from our earlier projection of JPY125.

<Reasons for the Revision>
Similar to the projections for consolidated business results, we are projecting that non-consolidated net sales will decline from our projection of April 2009. With respect to profits, we are also estimating that they will decrease from our projections, because our efforts in reducing fixed and production costs on a non-consolidated basis won't be able to make up for a decline in sales.


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The announcement set forth herein contains forward-looking statements which reflect management's current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as "will," "believes," "should," "projects" and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.
Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company's principal products, owing to changes in the economic conditions in the Company's principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company's objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company's research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.