Komatsu sales rise

Japanese equipment manufacturer Komatsu reported a +15% year-on-year rise in sales for the six months to 30 September, 2011, to JPY 986 billion (US$ 13 billion), while net income increased +48.5% to JPY 94.7 billion (US$ 1.2 billion).

Overall, sales of construction, mining and utility equipment increased by +11.8% year-on-year to reach JPY 853.6 billion (US$ 11.1 billion).

But the positive results were overshadowed by declining demand for construction, mining and utility equipment in China. "Demand for construction equipment, especially in the civil engineering sector, was adversely affected by the government's credit squeeze measure, and six-month sales declined," the company said.

Offsetting this, Komatsu said it saw demand for construction, mining and utility equipment grow steadily in other Asian markets, including its domestic Japanese market, together with increases in North America and Europe. The manufacturer said sales of mining equipment in Latin America and Indonesia had shown particularly strong growth, reflecting thriving demand for mineral and energy resources.

Lowered forecasts

Looking ahead to 2012, the company said it expected the Chinese government's fiscal measures to continue to impact demand for its products. As a result, Komatsu revised the full-year sales and profit forecasts it announced in April downward.

It now expects to record JPY 2 trillion (US$ 26 billion) net sales for the year to 31 March, 2012, down from the previous forecast of JPY 2.1 trillion (US$ 28 billion), while full-year net income of JPY 186 billion (US$ 2.5 billion) is now expected compared to the previous forecast of JPY 200 billion (US$ 2.6 billion).