Komatsu Ltd. today disclosed its consolidated business results (U.S. GAAP) for the fiscal year ended March 31, 2019 (FY2018) and announced projections for the fiscal year ending March 31, 2020 (FY2019). See below for a summary.

1. Results for the Fiscal Year Ended March 31, 2019(FY2018)

For the fiscal year under review (April 1, 2018 - March 31, 2019), consolidated net sales totaled JPY 2,725.2 billion, up 9.0% from the previous fiscal year. In the construction, mining and utility equipment business, Komatsu steadfastly captured growing demand in many regions of the world, centering on North America and Asia & Oceania. As a result, sales improved from the previous fiscal year. In the industrial machinery and others business, sales increased from the previous fiscal year, mainly supported by increased sales of presses and machine tools to the automobile manufacturing industry.

　With respect to profits for the fiscal year under review, operating income expanded by 48.2% from the previous fiscal year, to JPY 397.8 billion, driven by increased sales in many regions of the world and reflecting reduced temporary expenses in association with the acquisition of Komatsu Mining Corp., which became a consolidated subsidiary in April 2017. The operating income ratio improved by 3.9 percentage points to 14.6%. Income before income taxes and equity in earnings of affiliated companies advanced to JPY 377.4 billion, up 29.4%. Net income attributable to Komatsu Ltd. totaled JPY 256.4 billion, up 30.6%

2. Projections for the Fiscal Year Ending March 31, 2020 (FY2019)

In the construction, mining and utility equipment business, while we anticipate that demand will remain steady in Traditional Markets*, we will weather slowing growth of demand in China and Indonesia as well as the Japanese yen’s appreciation. As a result, we estimate sales will decline for the fiscal year. Although we will make efforts to improve selling prices, profits will also decrease from the previous fiscal year, as mainly affected by assumed changes in sales volume and geographical sales composition as well as an estimated increase in fixed costs, resulting from focused investment in growth areas.

　In the retail finance business, we project an increase in revenues but a decline in segment profit for the fiscal year, reflecting no more reversal of allowances for doubtful accounts which we recorded in China for FY2018.

　In the industrial machinery and others business, we project that both sales and segment profit will improve, as demand for presses should remain steady. 

　As preconditions for its projection, Komatsu is assuming the foreign exchange rates will be as follows: USD1=JPY 105, EUR1=JPY 119, and RMB1=JPY 15.6.

Notes:

Markets as Positioned by Komatsu

Traditional Markets: Japan, North America and Europe

Strategic Markets: China, Latin America, Asia, Oceania, Africa, Middle East and CIS

3. Cash Dividends

Komatsu Ltd. is planning to set the fiscal year-end cash dividend at JPY59 per share. As a result, annual cash dividends for the year under review, including the interim cash dividend of JPY51 per share, amount to JPY110 per share. (Komatsu Ltd. is planning to propose the fiscal year-end dividend amount to the 150th ordinary general meeting of shareholders scheduled for June 18, 2019.)

　Regarding annual cash dividends for the fiscal year ending March 31, 2020, Komatsu Ltd. plans to set them at JPY110 per share, the same amount for the fiscal year ended March 31, 2019.