Komatsu : Consolidated Business Results for the Fiscal Year Ended March 31, 2015 (U.S. GAAP)

Komatsu Ltd. today disclosed its consolidated business results (U.S. GAAP) for the fiscal year ended March 31, 2015 (FY2014) and announced a projection for the current fiscal year ending March 31, 2016 (FY2015). See below for a summary.

For the fiscal year ended March 31, 2015, consolidated net sales totaled JPY1,978.6 billion, up 1.3% from FY2013. Operating income amounted to JPY242.0 billion, up 0.7%. Operating income ratio translated into 12.2%, down 0.1 percentage point.
In the construction, mining and utility equipment business, while demand for mining equipment remained slack and demand for construction and mining equipment declined in China and other emerging countries, that for construction equipment increased steadily in advanced countries in North America and Europe. Sales increased from FY2013, largely supported by the Japanese yenfs depreciation against the US dollar, euro and renminbi. Segment profit decreased in spite of our continuous efforts to improve selling prices and the like, coupled with the Japanese yenfs depreciation.
In the industrial machinery and others business, sales increased from FY2013, supported by good sales of presses against the backdrop of capital investment mainly in the automobile manufacturing industry. Segment profit advanced sharply, because the loss of wire saw inventories was realized for FY2013.

In the construction, mining and utility equipment business, while demand for construction equipment should remain steady in North America and Europe, Komatsu expects to meet a market environment which is more challenging than FY2014. Such market environment is attributable to a drastic decline of demand in China and other emerging countries, coupled with further drop of demand for mining equipment resulting from the conservative mindset of mining customers for capital investment against the backdrop of sluggish commodity prices. In the industrial machinery and others business, Komatsu anticipates strong sales of excimer lasers as a light source to the semiconductor manufacturing industry, in addition to steady sales of sheet-metal and press machines as well as machine tools to the automobile manufacturing industry. As Komatsu cannot expect expanding demand, it will step up its group-wide efforts to reinforce SMARTCONSTRUCTION and other solutions as well as the aftermarket business by advocating comprehensive merits to customers. At the same time, Komatsu will also make continuous and speedy efforts to improve production costs and fixed costs. Coupled with gains from continuous improvements of selling prices, Komatsu will make utmost group-wide efforts to maximize earnings. Komatsu projects consolidated business results for the fiscal year ending March 31, 2016 as follows.

Komatsu Ltd. is planning to set the fiscal year-end cash dividend at JPY29 per share. As a result, annual cash dividends for the year under review, including the interim cash dividend of JPY29 per share, amount to JPY58 per share. (Komatsu Ltd. is planning to propose the fiscal year-end dividend amount to the 146th ordinary general meeting of shareholders scheduled for June 24, 2015.)
Regarding annual cash dividends for the fiscal year ending March 31, 2016, Komatsu Ltd. plans to set the annual cash dividends per share at JPY58, the same amount for the fiscal year ended March 31, 2015.