Komatsu reports consolidated sales down 17.2%
By Jenny Lescohier03 February 2021
Komatsu Ltd. announced its consolidated business results for the nine-month period of fiscal year 2020, ending March 31, 2021, reporting consolidated net sales of JPY 1,513.3 billion (US$14.4 billion), down 17.2% from the same time one year ago.
Although demand showed steady recovery for construction equipment, it remained sluggish for mining equipment and was adversely affected by the Covid-19 pandemic.
The latest results are an improvement over the last report, which for the first six-month period of fiscal year 2020 (April 1 to September 30, 2020), showed consolidated net sales totaled JPY 957.7 billion (US$9.12 billion), down 21.1% from the corresponding period a year ago.
Komatsu Ltd. and its consolidated subsidiaries have engaged in the three-year mid-term management plan (FY2019 - 2021), “DANTOTSU Value - FORWARD Together for Sustainable Growth” in observation of its 100th anniversary in 2021. Under the mid-term management plan, launched in April 2019, Komatsu said it upholds three pillars of growth: 1) value creation by means of innovation, 2) growth strategies based on business reforms, and 3) structural reforms for growth.
With respect to profits for the nine-month period currently under review, operating income dropped by 48.3% from the corresponding period a year ago, to JPY 107.5 billion (US$1.02 billion). This was mainly due to reduced sales volume, and changes in the compositions of sales in the construction, mining and utility equipment business, as well as the Japanese yen’s appreciation, even while Komatsu worked to reduce fixed costs.
The operating income ratio decreased by 4.3 percentage points to 7.1%. Income before income taxes and equity in earnings of affiliated companies fell by 45.6% to JPY 103.3 billion (US$0.99 billion). Net income attributable to Komatsu Ltd. totaled JPY 65.9 billion (US$0.63 Billion), down 51.2%.