Asian market impact for Komatsu

Komatsu’s revenues for the first quarter of the fiscal year ending June 30 were down -3.1% to JPY 446 billion (US$ 3.61 billion) compared to the same period last year. The company’s operating income fell -21.7% to JPY 49.7 billion (US$ 402 million).

The bulk of the company’s revenues were derived from construction and mining equipment sales, which were down -3.8% to JPY 403 billion (US$ 3.26 billion). Despite growth in domestic sales of +3.3% to JPY 68.1 billion (US$ 550 million), it was other Asian and Oceanic markets which chiefly contributed to the overall decline.

Revenues in China were down -42.7% to JPY 20.2 billion (US$ 163 million), while sales in Oceania dropped -26.1% to JPY 27.2 billion (US$ 220 million) and business in the rest of Asia, excluding China and Japan, dropped -4.5% to JPY 52.9 billion (US$ 428 million). Steep declines in sales were also seen in Africa and the CIS.

These losses were partly offset by a surge in business in North America, where Komatsu saw its revenues rise +34.6% to JPY 83.2 billion (US$ 673 million).

The company expects its overall sales for the full fiscal year to be down -5.0% on 2014 at JPY 1.88 trillion (US$ 15.2 billion). Net income is expected to fall -10.4% to JPY 138 billion (US$ 1.12 billion).