Komatsu Ltd. today announced its consolidated business results for six months of the fiscal year ending March 31, 2021 (U.S. GAAP). The highlights are described below.

1. Results for Six Months Ended September 30, 2020

For the first six-month period (April 1- September 30, 2020) of the fiscal year ending March 31, 2021, the second year of the mid-term management plan, consolidated net sales totaled JPY 957.7 billion, down 21.1% from the corresponding period a year ago. In the construction, mining and utility equipment business, demand fell, centering on North America, Europe & CIS and Asia, as particularly affected by the coronavirus (COVID-19) pandemic. As a result, sales declined from the corresponding period a year ago. In the industrial machinery and others business, demand for presses, sheet-metal machines, and machine tools remained slack against the coronavirus (COVID-19) pandemic. As a result, sales fell from the corresponding period a year ago.

With respect to profits for the first six-month period under review, operating income dropped by 57.5% from the corresponding period a year ago, to JPY 60.3 billion. This was mainly due to reduced sales volume, and a change in the geographic composition of sales in the construction, mining and utility equipment business, while Komatsu worked to reduce fixed costs. The operating income ratio decreased by 5.4 percentage points to 6.3%. Income before income taxes and equity in earnings of affiliated companies fell by 54.3% to JPY 58.5 billion. Net income attributable to Komatsu Ltd. totaled JPY 37.2 billion, down 58.6%.