JAPANESE

Consolidated Business Results for Six Months of the Fiscal Year Ending March 31, 2014 (U.S.GAAP)

Komatsu Ltd. today announced its business results for six months of the fiscal year ending March 31, 2014. The highlights are described below.


1. Results for six months ended September 30, 2013



[Review of two business segments]

Construction, Mining and Utility Equipment:
Komatsu worked to compensate for dropped demand for mining equipment as affected by sluggish commodity prices mainly by expanding sales volume of construction equipment in Japan where demand has been steady and in China where demand has upturned for recovery. However, both sales and segment profit decreased.

Industrial Machinery and Others:
Both sales and segment profit increased, supported by steady sales of sheet-metal and press machines, including large presses.


2. Projection for the fiscal year ending March 31, 2014

With respect to the construction, mining and utility equipment business, Komatsu is projecting that sales volume will outperform the amount, which Komatsu anticipated at the beginning of the current fiscal year, in Japan where demand has remained steady, and in China where demand has upturned for recovery. Meanwhile, demand for equipment for use in mines has lingered at a level significantly lower than Komatsu's estimation made at the start of the fiscal year, mainly in Latin America, Oceania and Asia centering on Indonesia. In this light, Komatsu is assuming that sales of this business will fall short of its projection of April 25, 2013. Concerning profits, while facing a decline in sales volume in the construction, mining and utility equipment business, Komatsu is also assuming some factors of loss, including a future risk on the inventory of wire saws, whose demand has stayed slack in the industrial machinery and others business. Accordingly, Komatsu is estimating that profits will also fall short of its initial projection. Based on these conditions, Komatsu has revised its projections of consolidated sales and profits for the fiscal year, ending March 31, 2014(April 1, 2013 - March 31, 2014).
As preconditions for its current projection, Komatsu is assuming the foreign exchange rates as follows: USD1=JPY96.5, EUR1=JPY125.6 and RMB1=JPY15.6. (Preconditions for its initial projection: USD1=JPY95, EUR1=JPY123 and RMB1=JPY15.3)




3. Interim cash dividend: 29 yen per share (FY2012 interim: 24 yen)


Information in the news releases is current on the date of the announcement and is subject to change without notice.

2013/10/28

KOMATSU Corporate Communications
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