Form 6-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of October, 2013

COMMISSION FILE NUMBER: 1-7239

 

 

KOMATSU LTD.

(Translation of registrant’s name into English)

 

 

3-6 Akasaka 2-chome, Minato-ku, Tokyo, 107-8414, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x             Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ¨

 

 

 


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INFORMATION INCLUDED IN THIS REPORT

 

1. English translation of a company announcement made on October 28, 2013 regarding the Consolidated Business Results for the Second Quarter of the Fiscal Year Ending March 31, 2014 (U.S. GAAP).

 

2. English translation of a company announcement made on October 28, 2013 regarding the Revisions to the Projected Business Results for the Fiscal Year Ending March 31, 2014(Consolidated and Non-consolidated).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      KOMATSU LTD.
      (Registrant)
Date: October 29, 2013     By:   /S/ Mikio Fujitsuka
      Mikio Fujitsuka
      Director and Senior Executive Officer

 

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Komatsu Ltd.

Corporate Communications Dept.

Tel: +81-(0)3-5561-2616

Date: October 28, 2013

URL: http://www.komatsu.com/

Consolidated Business Results for Six Months of the Fiscal Year Ending

March 31, 2014 (U.S. GAAP)

1. Results for Six Months Ended September 30, 2013

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

 

 

      Millions of yen except per share amounts   
    Six Months ended
September 30, 2013
    Six Months ended
September 30, 2012
   

Changes

Increase (Decrease)

 
    [A]     [B]     [A-B]     [(A-B)/
B]
 

Net sales

    925,121        930,849        (5,728     (0.6 )% 
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    108,946        111,264        (2,318     (2.1 )% 
 

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

    112,461        105,384        7,077        6.7
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

    78,810        66,112        12,698        19.2
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share (Yen)

       

Basic

  ¥ 82.69      ¥ 69.42      ¥ 13.27     
 

 

 

   

 

 

   

 

 

   

Diluted

  ¥ 82.60      ¥ 69.37      ¥ 13.23     
 

 

 

   

 

 

   

 

 

   

 

Note: Comprehensive income for six months ended September 30, 2013 and 2012

2013:         111,632 millions of yen, up 375.4% from 2012

2012:         23,483 millions of yen, down 33.5% from 2011

(2) Consolidated Financial Position

 

 

     Millions of yen except per share amounts   
     As of September 30, 2013     As of March 31, 2013  

Total assets

     2,546,689        2,517,857   
  

 

 

   

 

 

 

Total equity

     1,337,738        1,252,695   
  

 

 

   

 

 

 

Komatsu Ltd. shareholders’ equity

     1,278,449        1,193,194   
  

 

 

   

 

 

 

Komatsu Ltd. shareholders’ equity ratio

     50.2     47.4
  

 

 

   

 

 

 

Komatsu Ltd. shareholders’ equity per share (Yen)

   ¥ 1,341.23      ¥ 1,252.33   
  

 

 

   

 

 

 

2. Dividends

 

(For the fiscal years ended March 31, 2013 and ending March 31, 2014)

  

     Yen   
     The entire FY ending March 31, 2014      The entire FY ended
March 31, 2013
 
     Results      Projection     

First quarter period

  

Second quarter period

     29.00         —           24.00   

Third quarter period

        

Year-end

     —           29.00         24.00   
  

 

 

    

 

 

    

 

 

 

Total

        58.00         48.00   

 

Note: Changes in the projected cash dividend as of October 28, 2013: None

 

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3. Projection for the Fiscal Year Ending March 31, 2014

(From April 1, 2013 to March 31, 2014)

 

    Millions of yen except per share amounts   
    The full fiscal year  
          Changes  

Net sales

    1,860,000        (1.3 )% 
 

 

 

   

 

 

 

Operating income

    210,000        (0.8 )% 
 

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

    209,000        2.1
 

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

    136,000        7.7
 

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share—basic (Yen)

    ¥142.69   
 

 

 

 

Notes: 1) Changes in the projected consolidated business results as of October 28, 2013: Applicable

 2) Percentages shown above represent the rates of change compared with the corresponding period a year ago.

4. Others

 

(1) Changes in important subsidiaries during the six months period under review: None

 

(2) Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None

 

(3) Changes in Significant Accounting Rules, Procedures and Presentation and Changes in Significant Accounting Policies and Estimates

 

  1) Changes resulting from revisions in accounting standards, etc: Applicable

 

  2) Changes in other matters except for 1) above: Applicable

Note: See (4) Others on page 10 for more details.

 

(4) Number of common shares outstanding

 

  1) The numbers of common shares issued (including treasury stock) were as follows:

As of September 30, 2013: 983,130,260 shares

As of March 31, 2013: 983,130,260 shares

 

  2) The numbers of shares of treasury were as follows:

As of September 30, 2013: 29,941,260 shares

As of March 31, 2013: 30,351,401 shares

 

  3) The weighted average numbers of common shares outstanding were as follows:

Six months period ended September 30, 2013: 953,073,969 shares

Six months period ended September 30, 2012: 952,319,152 shares

 

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[Reference]

Results for Three Months Ended September 30, 2013

 

        Millions of yen except per share amounts   
     Three Months ended
September 30, 2013
     Three Months ended
September 30, 2012
     Changes  
     [A]      [B]      [A-B]      [(A-B)/B]  

Net sales

     469,962         460,901         9,061         2.0
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     56,533         55,546         987         1.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes and equity in earnings of affiliated companies

     60,872         54,142         6,730         12.4
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Komatsu Ltd.

     41,519         33,988         7,531         22.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income attributable to Komatsu Ltd. per share (Yen)

           

Basic

   ¥ 43.56       ¥ 35.69       ¥ 7.87      
  

 

 

    

 

 

    

 

 

    

Diluted

   ¥ 43.51       ¥ 35.66       ¥ 7.85      
  

 

 

    

 

 

    

 

 

    

[Reference]

Projection of the Company for the Fiscal Year Ending March 31, 2014

(From April 1, 2013 to March 31, 2014)

 

     Millions of yen except per share amounts   
     The full fiscal year  
            Changes  

Net sales

     700,000         (5.3 )% 
  

 

 

    

 

 

 

Ordinary profit

     145,000         69.8
  

 

 

    

 

 

 

Net income

     125,000         89.3
  

 

 

    

 

 

 

Net income per share (Yen)

     ¥131.07   
  

 

 

 

Notes: Percentages shown above represent the rates of change compared with the corresponding period a year ago.

 

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Appendix

 

Management Performance and Financial Conditions

  

(1) Outline of Operations and Business Results

     P.5   

(2) Financial Conditions

     P.8   

(3) Projection for the Fiscal Year Ending March 31, 2014

     P.9   

(4) Others

     P.10   

Consolidated Financial Statements

  

(1) Consolidated Balance Sheets

     P.12   

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

     P.14   

(3) Consolidated Statements of Cash Flows

     P.18   

(4) Note to the Going Concern Assumption

     P.19   

(5) Business Segment Information

     P.19   

(6) Note in Case of Notable Changes in the Amount of Shareholders’ Equity

     P.20   

(7) Others

     P.20   

 

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Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) embarked on the “Together We Innovate GEMBA Worldwide” three-year mid-range management plan in April 2013. Under this plan, Komatsu has started to make focused efforts on 1) growth strategies based on innovation, 2) growth strategies of existing businesses, and 3) structural reforms designed to reinforce the business foundation.

For the first six-month period (April 1 – September 30, 2013) of the fiscal year ending March 31, 2014, which represents the first year of the mid-range management plan, overall demand for construction equipment remained almost flat from the corresponding period a year ago, albeit with regional variances. Meanwhile, demand for mining equipment continued slack, as commodity prices still stayed behind recovery. As a result, sales of the construction, mining and utility equipment business declined from the corresponding period a year ago. With respect to the industrial machinery and others business, sales volume of machine tools as well as sheet-metal and press machines increased, centering on the automobile manufacturing industry. Consolidated net sales for the first six-month period decreased by 0.6% from the corresponding period a year ago, to JPY 925.1 billion (USD 9,440 million, at USD1=JPY98). Concerning profits, while Komatsu continued to make efforts to improve selling prices and production costs in addition to further depreciation of the Japanese yen as an external factor, it faced a sharp drop in sales volume of mining equipment, especially in Indonesia. Operating income declined by 2.1% to JPY108.9 billion (USD 1,112 million), and operating income ratio was 11.8%, down 0.2 percentage points from the corresponding period a year ago. Income before income taxes and equity in earnings of affiliated companies increased by 6.7% to JPY 112.4 billion (USD 1,148 million), and net income attributable to Komatsu Ltd. advanced by 19.2% to JPY 78.8 billion (USD 804 million) for the six-month period under review.

 

 

[Consolidated Financial Highlights]

        Millions of yen   
    Six Months ended
September 30,
2013

1USD=JPY98.0
1EUR=JPY128.2
1RMB=JPY15.9
    Six Months ended
September 30,
2012
1USD=JPY79.6
1EUR=JPY101.5
1RMB=JPY12.6
    Changes
Increase
(Decrease)
 
    [A]     [B]     [(A-B)/B]  

Net sales

    925,121        930,849        (0.6 )% 
 

 

 

   

 

 

   

 

 

 

Construction, Mining and Utility Equipment

    830,071        839,150        (1.1 )% 
 

 

 

   

 

 

   

 

 

 

Industrial Machinery and Others

    99,599        97,199        2.5
 

 

 

   

 

 

   

 

 

 

Elimination

    (4,549     (5,500     —     
 

 

 

   

 

 

   

 

 

 

Segment profit

    109,093        111,280        (2.0 )% 
 

 

 

   

 

 

   

 

 

 

Construction, Mining and Utility Equipment

    105,793        109,581        (3.5 )% 
 

 

 

   

 

 

   

 

 

 

Industrial Machinery and Others

    4,808        3,301        45.7
 

 

 

   

 

 

   

 

 

 

Corporate & elimination

    (1,508     (1,602     —     
 

 

 

   

 

 

   

 

 

 

Operating income

    108,946        111,264        (2.1 )% 
 

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

    112,461        105,384        6.7
 

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

    78,810        66,112        19.2
 

 

 

   

 

 

   

 

 

 

 

Note: Sales and profit figures in this report show the respective sums of six months from April 1 to September 30, 2013. Unless otherwise noted, all sales by segment in this report indicate the amounts before elimination of inter-segment transactions.

 

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Business results by operation are described below.

Construction, Mining and Utility Equipment

With respect to construction equipment, demand increased in Japan and upturned for recovery in China, while it declined in some other regions in the first six-month period under review. As a result, overall demand remained almost flat from the corresponding period a year ago. With respect to mining equipment, against the backdrop of prolonging sluggish prices of commodities, demand remained slack especially in Indonesia and Komatsu’s sales volume declined. Sales of parts advanced, reflecting an increase in the machine population of Komatsu construction and mining equipment, and the Japanese yen depreciated against the U.S. dollar, euro, renminbi and some other currencies compared to the corresponding period a year ago; however, first six-month sales of construction, mining and utility equipment declined by 1.1% from the corresponding period a year ago, to JPY 830.0 billion (USD 8,470 million), as impacted by a drop in sales volume of mining equipment. Segment profit decreased by 3.5% to JPY 105.7 billion (USD 1,080 million) for the six-month period under review.

Under such an environment, Komatsu began the market introduction of D61EXi/PXi medium-sized Machine Control dozers in North America, Europe and Japan. This model features the world’s first fully automatic blade control as a next-generation product designed to promote automation of construction and to lead Komatsu’s strategies based on innovation. Komatsu also worked to strengthen the aftermarket business, which includes the provision of services and sales of strategic parts, by using KOMTRAX (Komatsu Machine Tracking System), which is installed in over 300,000 units worldwide. With respect to new emission standards-compliant models, Komatsu continued their aggressive market introduction together with KOMATSU CARE, a new service program designed to reduce the total lifecycle costs of these models and prolong machine life.

During the six-month period under review, Komatsu completed the construction of a new manufacturing engineering development center in the Osaka Plant in order to strengthen its research and development operations of manufacturing engineering, a key technology to reform production and improve product performance. Komatsu also promoted activities to cut down electric power consumption to half at all plants in Japan, including the construction of new factories which are equipped with cutting-edge energy-saving facilities and are designed to achieve outstanding productivity at the Awazu Plant in Ishikawa Prefecture.

 

                                   

[Sales to Outside Customers of Construction, Mining and Utility Equipment by Region]

  

    Millions of yen   
     Six Months ended
September 30, 2013
     Six Months ended
September 30, 2012
    

Changes

Increase (Decrease)

 
     [A]      [B]      [A-B]     [(A-B)/B]  

Japan

     150,071         132,425         17,646        13.3
  

 

 

    

 

 

    

 

 

   

 

 

 

North America

     136,324         125,878         10,446        8.3

Latin America

     121,054         132,745         (11,691     (8.8 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

Americas

     257,378         258,623         (1,245     (0.5 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

Europe

     57,247         50,973         6,274        12.3

CIS

     35,760         41,183         (5,423     (13.2 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

Europe & CIS

     93,007         92,156         851        0.9
  

 

 

    

 

 

    

 

 

   

 

 

 

China

     72,758         62,528         10,230        16.4
  

 

 

    

 

 

    

 

 

   

 

 

 

Asia*

     91,923         130,928         (39,005     (29.8 )% 

Oceania

     87,177         99,194         (12,017     (12.1 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

Asia* & Oceania

     179,100         230,122         (51,022     (22.2 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

Middle East

     27,225         14,301         12,924        90.4

Africa

     49,236         47,513         1,723        3.6
  

 

 

    

 

 

    

 

 

   

 

 

 

Middle East & Africa

     76,461         61,814         14,647        23.7
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

     828,775         837,668         (8,893     (1.1 )% 
  

 

 

    

 

 

    

 

 

   

 

 

 

 

* Excluding Japan and China

 

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Komatsu’s operations by region are described below.

Japan

During the six-month period under review, demand for construction equipment increased, supported by demand in the regions destroyed by the Great East Japan Earthquake through full-scale civil engineering works which began with the construction and relocation of residences for community development in addition to an increase in public investment resulting from fiscal measures. Demand advanced especially in rental companies. As a result, sales increased from the corresponding period a year ago.

In September, Komatsu began the market introduction of the D61PXi medium-sized Machine Control dozer, starting with Komatsu Rental Ltd. and Komatsu-affiliated rental companies, which are very familiar with GNSS (Global Navigation Satellite System) technologies, such as GPS (Global Positioning System) and GLONASS, and management know-how of ICT devices. With respect to new products that are compliant with new emissions standards, which have become effective steadily, Komatsu launched over 30 models last year and has worked to expand their sales. In October, Komatsu began sales of HB205-2, the new emission standard-compliant model of the hybrid hydraulic excavator.

Americas

In North America, while demand increased in the housing and energy development sectors, that in the rental sector declined from the corresponding period a year ago. As a result, overall demand lacked a growth momentum in the first six-month period under review. Sales increased from the corresponding period a year ago, supported by the Japanese yen’s depreciation. In June, Komatsu launched D61EXi/PXi medium-sized Machine Control dozers first in North America and has steadily increased their sales.

In Latin America, while demand for construction equipment advanced in Brazil, the largest market of the region, demand for mining equipment for use in copper mines in Chile and Peru downturned due to a fall of the international price of copper, where demand had remained steady in the previous fiscal year. As a result, sales declined from the corresponding period a year ago.

Europe & CIS

In Europe, demand remained slack in Germany and France, among major markets, as economies slowed down against the backdrop of the Eurozone crisis. However, sales increased from the corresponding period a year ago, reflecting the Japanese yen’s depreciation.

In CIS, sales declined from the corresponding period a year ago, as impacted by demand downturned for mining equipment in gold mines. Based on the mid- to long-range perspective and following the agreements with Pacific National University last year, Komatsu donated hands-on training materials for a special course and opened the course taught by Komatsu engineers at Far Eastern Federal University. In collaboration with the University, the course is designed to develop human resources for construction, mining and road construction equipment.

China

Demand, which had been sluggish since FY2011, upturned in April this year. Sales of Komatsu’s flagship 20-ton class hydraulic excavators, which were launched in the previous fiscal year, advanced steadily, as did smaller models. Sales for 30-ton class hydraulic excavators also recovered in June this year. As a result, sales improved from the corresponding period a year ago. By maximizing the use of KOMTRAX, Komatsu worked to assess market conditions as quickly as possible and manage its inventories at an appropriate level.

 

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Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand for mining and construction equipment dropped, as mainly affected by a plunge in the international price of thermal coals and continuing depreciation of the Indonesian rupiah. As a result, sales in Asia dropped from the corresponding period a year ago.

In Oceania, as both demand for mining equipment in iron ore mines and that for construction equipment remained sluggish, sales declined from the corresponding period a year ago. With respect to the large-scale project to deliver driverless dump trucks in Rio Tinto’s iron ore mines in Australia, Komatsu and Rio Tinto continued to make good progress as one solid team to succeed.

Middle East & Africa

In Turkey, a major market of the Middle East, while political instability continued to prevail in some aspects, demand for construction equipment remained steady, supported by an increase in public investment driven by the government. Sales increased in the Middle East from the corresponding period a year ago, partly reflecting the market conditions in Turkey.

In Africa, demand advanced in coal mines in South Africa and in copper mines in Zambia. As a result, sales increased from the corresponding period a year ago. Komatsu advanced its program with mining customers to improve their jobsite productivity by analyzing KOMTRAX information as part of brand management activities.

Industrial Machinery and Others

While demand for wire saws continued to stay sluggish, the sales volume of machine tools, as well as sheet-metal and press machines, advanced centering on the automobile manufacturing industry. As a result, sales of the industrial machinery and others business increased by 2.5% from the corresponding period a year ago, to JPY 99.5 billion (USD 1,016 million). Segment profit also improved by 45.7% to JPY 4.8 billion (USD 49 million) for the first six-month period under review.

Komatsu aggressively worked to expand sales of strategic products, such as NTG-4SP grinders, H1F-2 small AC Servo presses, and new KFL Series fiber laser cutting machines, all designed to enhance customers’ productivity, safety and environmental performance.

(2) Financial Conditions

As of September 30, 2013, total assets increased by JPY28.8 billion from the previous fiscal year-end, to JPY2,546.6 billion (USD 25,987 million), mainly due to the Japanese yen’s depreciation against U.S. dollar, euro and renminbi from the previous fiscal-year end. Interest-bearing debt declined by JPY58.8 billion from the previous fiscal year-end, to JPY620.8 billion (USD 6,336 million). Komatsu Ltd. shareholders’ equity increased by JPY85.2 billion from the previous fiscal year-end, to JPY1,278.4 billion (USD 13,045 million). As a result, Komatsu Ltd. shareholders’ equity ratio increased by 2.8 percentage points from the previous fiscal year-end, to 50.2%. Net debt-to-equity ratio* was 0.41, compared to 0.49 as of the previous fiscal year-end.

 

* Net debt-to-equity ratio = (Interest-bearing debt – Cash and cash equivalents – Time deposits) / Komatsu Ltd. shareholders’ equity

 

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For the first six-month period under review, net cash provided by operating activities totaled JPY163.6 billion (USD 1,670 million), an increase of JPY67.3 billion from the corresponding period a year ago, mainly due to the collection of notes and accounts receivable, coupled with increased net income. Net cash used in investing activities amounted to JPY76.1 billion (USD 777 million), an increase of JPY12.8 billion from the corresponding period a year ago mainly due to the purchase of fixed assets. Net cash used in financing activities totaled JPY91.9 billion (USD 939 million), mainly due to the repayment of debt, as compared to JPY31.9 billion used for the corresponding period a year ago. After adding the effects of foreign exchange fluctuations, cash and cash equivalents, as of September 30, 2013, totaled JPY91.6 billion (USD 935 million), a decrease of JPY1.9 billion from the previous fiscal year-end.

(3) Projection for the Fiscal Year Ending March 31, 2014

(From April 1, 2013 to 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.

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)

Projection for Consolidated Business Results for the Fiscal Year Ending March 31, 2014

 

           Millions of yen except per share amounts   
     Earlier
projection
     Current
projection
     Changes     Results for FY
ended March 31,
2013
 
     [A]      [B]      [B-A]     [(B-A)/A]    

Net sales

     2,050,000         1,860,000         (190,000     (9.3 )%      1,884,991   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Operating income

     305,000         210,000         (95,000     (31.1 )%      211,602   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

     297,000         209,000         (88,000     (29.6 )%      204,603   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

     184,000         136,000         (48,000     (26.1 )%      126,321   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share—basic (Yen)

     193.12         142.69         —          —          132.64   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

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[Reference]

Projection of the Company for the Fiscal Year Ending March 31, 2014

Similarly, the Company is also projecting that non-consolidated volume of sales of mining equipment will decline in the construction, mining and utility equipment business. In this light, the Company has revised its projection of April 25, 2013 for non-consolidated net sales and profits for the fiscal year, ending March 31, 2014(April 1, 2013 – March 31, 2014).

Projection of the Company for the Fiscal Year Ending March 31, 2014

 

 

           Millions of yen except per share amounts   
     Earlier
projection
     Current
projection
     Changes     Results for FY
ended March 31,
2013
 
     [A]      [B]      [B-A]     [(B-A)/A]    

Net sales

     790,000         700,000         (90,000     (11.4 )%      738,871   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Ordinary profit

     175,000         145,000         (30,000     (17.1 )%      85,390   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income

     137,000         125,000         (12,000     (8.8 )%      66,016   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net income per share—basic (Yen)

     143.71         131.07         —          —          69.28   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

(4) Others

 

(1) Changes in important subsidiaries during the six month period under review: None

 

(2) Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None

 

(3) Changes in Significant Accounting Rules, Procedures and Presentation and Changes in Significant Accounting Policies and Estimates

 

  1) Changes resulting from revisions in accounting standards, etc.: Applicable

From the fiscal year ending March 31, 2014, Komatsu adopted the Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This adoption did not have any impact on Komatsu’s financial position and results of operations.

 

  2) Changes in other matters except for 1) above: Applicable

The Company and some of its consolidated subsidiaries which had adopted the declining balance method for depreciation of property, plant and equipment changed the depreciation method to the straight-line method beginning April 1, 2013.

Komatsu promotes continuous innovation of technologies by concentrating the production of high-value added and technologically important key components in Japan, and also undertakes integrated development and production under the Mother Plant system. As a general rule, Komatsu engages in local production in different parts of the world where there is sufficient market demand for its products. With respect to mainstay products, however, Komatsu has facilitated effective use of its global production capacities by cross sourcing finished products after producing them at its most cost-effective plants and exporting them in light of changes in market demand and foreign exchange rate. Komatsu is establishing its production efficiency, standardization of production and stable operation of production facilities through renewing its old factory buildings in Japan, reassessing logistics and reforming production process by technology innovation as well as cutting down electric power consumption in half at its plants in Japan. With respect to capital investment, Komatsu continues to invest in its production facilities for renovation at a constant level. In light of those activities, Komatsu expects stable production and facility utilization within its production capacity, and is able to receive economic benefits from those facilities at a constant rate throughout their durable periods.

 

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As a result of reviewing its depreciation method, Komatsu concluded that the straight-line method would be an appropriate depreciation method to reflect its usage of property, plants and equipment and to allocate the costs in earnings.

The effect of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections”.

As a result of the change in depreciation method, depreciation expense for the six months ended September 30, 2013 decreased by approximately JPY5.3 billion. Net Income attributable to Komatsu Ltd. for the six months ended September 30, 2013 increased by approximately JPY3.3 billion. Both Basic and Diluted net income attributable to Komatsu Ltd. per common share for the six months ended September 30, 2013 increased by JPY3.50.

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

 

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Consolidated Financial Statements

(1) Consolidated Balance Sheets

Assets

Millions of yen

     As of September 30, 2013      As of March 31, 2013  
            Ratio (%)             Ratio (%)  

Current assets

           

Cash and cash equivalents

   ¥ 91,675          ¥ 93,620      

Time deposits

     369            217      

Trade notes and accounts receivable, net

     541,586            606,904      

Inventories

     679,938            633,647      

Deferred income taxes and other current assets

     162,547            157,668      
  

 

 

    

 

 

    

 

 

    

 

 

 

Total current assets

     1,476,115         58.0         1,492,056         59.3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Long-term trade receivables, net

     245,136         9.6         235,825         9.4   
  

 

 

    

 

 

    

 

 

    

 

 

 

Investments

           

Investments in and advances to affiliated companies

     19,483            19,404      

Investment securities

     62,590            59,279      

Other

     2,656            2,574      
  

 

 

    

 

 

    

 

 

    

 

 

 

Total investments

     84,729         3.3         81,257         3.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Property, plant and equipment

           

- less accumulated depreciation and amortization

     616,017         24.2         585,220         23.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Goodwill

     35,132         1.4         34,703         1.4   

Other intangible assets

           

- less accumulated amortization

     57,234         2.2         58,523         2.3   

Deferred income taxes and other assets

     32,326         1.3         30,273         1.2   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 2,546,689         100.0       ¥ 2,517,857         100.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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Liabilities and Equity

Millions of yen

     As of September 30, 2013      As of March 31, 2013  
           Ratio (%)            Ratio (%)  

Current liabilities

         

Short-term debt

   ¥ 199,509         ¥ 205,156     

Current maturities of long-term debt

     105,842           130,793     

Trade notes, bills and accounts payable

     234,508           226,275     

Income taxes payable

     25,567           33,227     

Deferred income taxes and other current liabilities

     230,991           232,125     
  

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

     796,417        31.3         827,576        32.8   
  

 

 

   

 

 

    

 

 

   

 

 

 

Long-term liabilities

         

Long-term debt

     315,530           343,814     

Liability for pension and retirement benefits

     51,013           49,912     

Deferred income taxes and other liabilities

     45,991           43,860     
  

 

 

   

 

 

    

 

 

   

 

 

 

Total long-term liabilities

     412,534        16.2         437,586        17.4   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total liabilities

     1,208,951        47.5         1,265,162        50.2   
  

 

 

   

 

 

    

 

 

   

 

 

 

Komatsu Ltd. shareholders’ equity

         

Common stock

     67,870           67,870     

Capital surplus

     139,045           138,818     

Retained earnings:

         

Appropriated for legal reserve

     39,634           38,230     

Unappropriated

     1,089,030           1,034,504     

Accumulated other comprehensive income (loss)

     (14,915        (43,440  

Treasury stock

     (42,215        (42,788  
  

 

 

   

 

 

    

 

 

   

 

 

 

Total Komatsu Ltd. shareholders’ equity

     1,278,449        50.2         1,193,194        47.4   
  

 

 

   

 

 

    

 

 

   

 

 

 

Noncontrolling interests

     59,289        2.3         59,501        2.4   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

     1,337,738        52.5         1,252,695        49.8   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total

   ¥ 2,546,689        100.0       ¥ 2,517,857        100.0   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Six months ended September 30, 2013 and 2012

Consolidated Statements of Income

Millions of yen except per share amounts

     Six Months ended
September 30, 2013
    Six Months ended
September 30, 2012
 
           Ratio
(%)
          Ratio
(%)
 

Net sales

   ¥ 925,121        100.0      ¥ 930,849        100.0   

Cost of sales

     660,541        71.4        678,085        72.8   

Selling, general and administrative expenses

     155,487        16.8        141,484        15.2   

Other operating income (expenses), net

     (147     (0.0     (16     (0.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     108,946        11.8        111,264        12.0   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expenses), net

        

Interest and dividend income

     2,286        0.2        2,268        0.2   

Interest expense

     (4,363     (0.5     (4,506     (0.5

Other, net

     5,592        0.6        (3,642     (0.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

     3,515        0.4        (5,880     (0.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

     112,461        12.2        105,384        11.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     30,120        3.3        34,716        3.7   

Income before equity in earnings of affiliated companies

     82,341        8.9        70,668        7.6   

Equity in earnings of affiliated companies

     944        0.1        568        0.1   

Net income

     83,285        9.0        71,236        7.7   

Less: Net income attributable to noncontrolling interests

     4,475        0.5        5,124        0.6   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

   ¥ 78,810        8.5      ¥ 66,112        7.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share (Yen)

        

Basic

   ¥ 82.69        ¥ 69.42     

Diluted

   ¥ 82.60        ¥ 69.37     

 

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Consolidated Statements of Comprehensive Income

Millions of yen

     Six Months ended
September 30, 2013
     Six Months ended
September 30, 2012
 

Net income

   ¥ 83,285       ¥ 71,236   

Other comprehensive income (loss), for the period, net of tax

     

Foreign currency translation adjustments

     23,268         (43,822

Net unrealized holding gains (losses) on securities available for sale

     3,793         (6,513

Pension liability adjustments

     502         1,202   

Net unrealized holding gains (losses) on derivative instruments

     784         1,380   
  

 

 

    

 

 

 

Total

     28,347         (47,753
  

 

 

    

 

 

 

Comprehensive income (loss)

     111,632         23,483   

Less: Comprehensive income (loss) attributable to noncontrolling interests

     4,318         2,192   
  

 

 

    

 

 

 

Comprehensive income (loss) attributable to Komatsu Ltd.

   ¥ 107,314       ¥ 21,291   
  

 

 

    

 

 

 

 

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Three months ended September 30, 2013 and 2012

Consolidated Statements of Income

Millions of yen except per share amounts

     Three Months ended
September 30, 2013
    Three Months ended
September 30, 2012
 
           Ratio
(%)
          Ratio
(%)
 

Net sales

   ¥ 469,962        100.0      ¥ 460,901        100.0   

Cost of sales

     335,175        71.3        334,930        72.7   

Selling, general and administrative expenses

     78,240        16.6        69,955        15.2   

Other operating income (expenses), net

     (14     (0.0     (470     (0.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     56,533        12.0        55,546        12.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expenses), net

        

Interest and dividend income

     884        0.2        952        0.2   

Interest expense

     (2,116     (0.5     (2,383     (0.5

Other, net

     5,571        1.2        27        0.0   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expenses)

     4,339        0.9        (1,404     (0.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

     60,872        13.0        54,142        11.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

     17,576        3.7        17,572        3.8   

Income before equity in earnings of affiliated companies

     43,296        9.2        36,570        7.9   

Equity in earnings of affiliated companies

     653        0.1        338        0.1   

Net income

     43,949        9.4        36,908        8.0   

Less: Net income attributable to noncontrolling interests

     2,430        0.5        2,920        0.6   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

   ¥ 41,519        8.8      ¥ 33,988        7.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share (Yen)

        

Basic

   ¥ 43.56        ¥ 35.69     

Diluted

   ¥ 43.51        ¥ 35.66     

 

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Consolidated Statements of Comprehensive Income

Millions of yen

    Three Months ended
September 30, 2013
    Three Months ended
September 30, 2012
 

Net income

  ¥ 43,949      ¥ 36,908   

Other comprehensive income (loss), for the period, net of tax

   

Foreign currency translation adjustments

    (5,377     (5,022

Net unrealized holding gains (losses) on securities available for sale

    2,122        (2,081

Pension liability adjustments

    207        638   

Net unrealized holding gains (losses) on derivative instruments

    (103     19   
 

 

 

   

 

 

 

Total

    (3,151     (6,446
 

 

 

   

 

 

 

Comprehensive income (loss)

    40,798        30,462   

Less: Comprehensive income (loss) attributable to noncontrolling interests

    2,131        2,760   
 

 

 

   

 

 

 

Comprehensive income (loss) attributable to Komatsu Ltd.

  ¥ 38,667      ¥ 27,702   
 

 

 

   

 

 

 

 

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(3) Consolidated Statements of Cash Flows

Millions of yen

     Six Months ended
September 30, 2013
    Six Months ended
September 30, 2012
 

Operating activities

    

Net income

   ¥ 83,285      ¥ 71,236   

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     43,231        42,544   

Deferred income taxes

     1,376        (1,518

Impairment loss and net loss (gain) from sale of investment

securities

     (1,498     81   

Net loss (gain) on sale of property

     (1,346     (249

Loss on disposal of fixed assets

     1,858        800   

Pension and retirement benefits, net

     1,397        1,077   

Changes in assets and liabilities:

    

Decrease (increase) in trade receivables

     73,959        54,536   

Decrease (increase) in inventories

     (32,488     (23,186

Increase (decrease) in trade payables

     6,829        (47,492

Increase (decrease) in income taxes payable

     (8,153     (4,777

Other, net

     (4,794     3,255   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     163,656        96,307   
  

 

 

   

 

 

 

Investing activities

    

Capital expenditures

     (85,134     (69,028

Proceeds from sale of property

     9,311        3,801   

Proceeds from sale of available for sale investment securities

     4,203        423   

Purchases of available for sale investment securities

     (33     (3

Acquisition of subsidiaries and equity investees, net of cash acquired

     (4,539     283   

Collection of loan receivables

     201        508   

Disbursement of loan receivables

     (16     —     

Decrease (increase) in time deposits, net

     (147     760   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (76,154     (63,256
  

 

 

   

 

 

 

Financing activities

    

Proceeds from debt issued (Original maturities greater than three months)

     83,745        176,194   

Payment on debt (Original maturities greater than three months)

     (111,077     (210,272

Short-term debt—net (Original maturities three months or less)

     (34,894     32,176   

Repayments of capital lease obligations

     (1,849     (3,648

Sale (purchase) of treasury stock, net

     (16     47   

Dividends paid

     (22,880     (20,009

Other, net

     (5,011     (6,438
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (91,982     (31,950
  

 

 

   

 

 

 

Effect of exchange rate change on cash and cash equivalents

     2,535        (4,237
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (1,945     (3,136
  

 

 

   

 

 

 

Cash and cash equivalents, beginning of year

     93,620        83,079   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   ¥ 91,675      ¥ 79,943   
  

 

 

   

 

 

 

 

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(4) Note to the Going Concern Assumption

None

(5) Business Segment Information

1) Information by Operating Segments

Six Months ended September 30, 2013 and 2012

 

(For Six Months ended September 30, 2013)    Millions of yen

 

     Construction,
Mining and
Utility Equipment
     Industrial
Machinery and
Others
     Subtotal      Corporate &
elimination
    Total  

Net sales:

             

Customers

     828,775         96,346         925,121         —          925,121   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Intersegment

     1,296         3,253         4,549         (4,549     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     830,071         99,599         929,670         (4,549     925,121   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment profit

     105,793         4,808         110,601         (1,508     109,093   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(For Six Months ended September 30, 2012)    Millions of yen

 

     Construction,
Mining and
Utility Equipment
     Industrial
Machinery and
Others
     Subtotal      Corporate &
elimination
    Total  

Net sales:

             

Customers

     837,668         93,181         930,849         —          930,849   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Intersegment

     1,482         4,018         5,500         (5,500     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     839,150         97,199         936,349         (5,500     930,849   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment profit

     109,581         3,301         112,882         (1,602     111,280   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Three Months ended September 30, 2013 and 2012

 

(For Three Months ended September 30, 2013)    Millions of yen

 

     Construction,
Mining and
Utility Equipment
     Industrial
Machinery and
Others
     Subtotal      Corporate &
elimination
    Total  

Net sales:

             

Customers

     412,870         57,092         469,962         —          469,962   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Intersegment

     564         2,129         2,693         (2,693     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     413,434         59,221         472,655         (2,693     469,962   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment profit

     53,182         3,985         57,167         (620     56,547   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(For Three Months ended September 30, 2012)    Millions of yen

 

     Construction,
Mining and
Utility Equipment
     Industrial
Machinery and
Others
     Subtotal      Corporate &
elimination
    Total  

Net sales:

             

Customers

     408,747         52,154         460,901         —          460,901   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Intersegment

     627         1,959         2,586         (2,586     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     409,374         54,113         463,487         (2,586     460,901   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment profit

     55,379         925         56,304         (288     56,016   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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LOGO

 

Notes: 1) Business categories and principal products & services included in each operating segment are as follows:

 

  a) Construction, Mining and Utility Equipment

Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines & components, casting products, and logistics

 

  b) Industrial Machinery and Others

Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others

 

  2) Transfers between segments are made at estimated arm’s-length prices.

2) Geographic Information

Net sales determined by customer location were as follows:

For Six Months ended September 30, 2013 and 2012

Millions of yen

     Japan      Americas      Europe &
CIS
     China      Asia* &
Oceania
     Middle East
& Africa
     Total  

FY2013

     193,608         272,858         96,179         87,722         198,278         76,476         925,121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

FY2012

     178,916         268,437         99,572         75,331         246,774         61,819         930,849   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For Three Months ended September 30, 2013 and 2012

Millions of yen

     Japan      Americas      Europe &
CIS
     China      Asia* &
Oceania
     Middle East
& Africa
     Total  

FY2013

     113,574         140,959         44,692         39,966         92,854         37,917         469,962   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

FY2012

     98,190         139,347         44,498         28,020         116,678         34,168         460,901   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Excluding Japan and China

(6) Note in Case of Notable Changes in the Amount of Shareholders’ Equity

None

(7) Others

In the Consolidated Statements of Cash Flow, Komatsu disclosed its cash flow of short-term debt in financing activities on a net amount basis in the six months ended September 30, 2012. Komatsu discloses its cash flow on a net amount basis for the debts whose original maturities are three months or less in the six months ended September 30, 2013. The Consolidated Statements of Cash Flow for the six months ended September 30, 2012 has been re-presented to be consistent with September 30, 2013. This change does not have any impact on the total cash flow from financing activities.

(end)

 

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Table of Contents
For Immediate Release    LOGO

Komatsu Ltd.

Corporate Communications Dept.

Tel: +81-(0)3-5561-2616

Date: October 28, 2013

URL: http://www.komatsu.com/

Announcement Concerning the Revision of Projected Business Results

Komatsu Ltd. (hereinafter “Company”) (President and CEO: Tetsuji Ohashi) has revised the projections for consolidated and non-consolidated business results for the fiscal year ending March 31, 2014, which the Company announced on April 25, 2013.

1. Projection for Consolidated Business Results for the Fiscal Year Ending March 31, 2014 (U.S. GAAP)

Millions of yen except per share amounts

    Earlier
projection
    Current
projection
    Changes     Results for FY
ended March 31,
2013
 
    [A]     [B]     [B-A]     [(B-A)/A]    

Net sales

    2,050,000        1,860,000        (190,000     (9.3 )%      1,884,991   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    305,000        210,000        (95,000     (31.1 )%      211,602   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings of affiliated companies

    297,000        209,000        (88,000     (29.6 )%      204,603   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd.

    184,000        136,000        (48,000     (26.1 )%      126,321   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Komatsu Ltd. per share—basic (Yen)

    193.12        142.69        —          —          132.64   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2. Projection for Non-consolidated Business Results for the Fiscal Year Ending March 31, 2014

Millions of yen except per share amounts

    Earlier
projection
    Current
projection
    Changes     Results for FY
ended March 31,
2013
 
    [A]     [B]     [B-A]     [(B-A)/A]    

Net sales

    790,000        700,000        (90,000     (11.4 )%      738,871   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ordinary profit

    175,000        145,000        (30,000     (17.1 )%      85,390   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    137,000        125,000        (12,000     (8.8 )%      66,016   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share—basic (Yen)

    143.71        131.07        —          —          69.28   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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3. Reasons for the Revision

[Projection for Consolidated Business Results]

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)

[Projection for Non-consolidated Business Results]

Similarly, the Company is also projecting that non-consolidated volume of sales of mining equipment will decline in the construction, mining and utility equipment business. In this light, the Company has revised its projection of April 25, 2013 for non-consolidated net sales and profits for the fiscal year, ending March 31, 2014(April 1, 2013 – March 31, 2014).

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for Komatsu principal products, owing to changes in the economic conditions in Komatsu principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving Komatsu objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of Komatsu research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

(end)

 

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