Komatsu : Consolidated Business Results for Nine Months of the Fiscal Year Ending March 31, 2017 (U.S. GAAP)

Komatsu Ltd. today announced its consolidated business results for Nine Months of the Fiscal Year Ending March 31, 2017 (U.S. GAAP). The highlights are described below.

1. Results for Nine Months of the Fiscal Year Ending March 31, 2017 (FY2016)

For the nine-month period (April 1 - December 31, 2016) of the fiscal year ending March 31, 2017, consolidated net sales totaled JPY1,226.7 billion, down 10.5% from the corresponding period a year ago. In the construction, mining and utility equipment business, the nine-month sales decreased from the corresponding period a year ago, as affected by the Japanese yen's appreciation. On a local currency basis, sales increased from the corresponding period a year ago, supported by increasing demand for construction and mining equipment in China and CIS in Strategic Markets. In addition, Komatsu steadfastly captured demand for construction equipment in North America and Europe in Traditional Markets. Meanwhile, demand was sluggish in other Strategic markets, such as the Middle East and Africa. In the retail finance business, revenues decreased from the corresponding period a year ago, affected by the Japanese yenfs appreciation and a decline of assets, mainly in China and Oceania. In the industrial machinery and others business, sales declined from the corresponding period a year ago, affected by reduced sales of presses and machine tools, especially to the automobile manufacturing industry.
With respect to profits, Komatsu continued to cut down fixed costs and improve selling prices. However, profits were adversely affected mainly by the Japanese yen's appreciation and changes in the geographic mix. As a result, operating income dropped by 30.8% from the corresponding period a year ago, to JPY107.0 billion. The operating income ratio translated into 8.7%, down 2.6 percentage points. Income before income taxes and equity in earnings of affiliated companies totaled JPY103.2 billion, down 32.6%. Net income attributable to Komatsu Ltd. amounted to JPY68.3 billion, down 34.1%.

2. Projections for the Fiscal Year Ending March 31, 2017 (FY2016)

Komatsu makes no change in the projection of April 27, 2016, concerning consolidated business results for the fiscal year ending March 31, 2017.
With respect to the projection of non-consolidated business results, however, we have made changes. For more information, please refer to the gAnnouncement: Revision of Projected Non-consolidated Business Resultsh which was announced today.