International Sales Drive Komatsu 1Q08 Results Up 12 Percent

Komatsu Ltd. last week announced its business results for three months ended June 30, or the first-quarter period of the fiscal year ending March 31, 2009. Net sales for the quarter were ¥606.8 billion (about U.S. $5.6 billion), a 12-percent increase from ¥540.9 billion (U.S. $5.0 billion) a year ago.

In the construction, mining and utility equipment business, Komatsu continued to expand sales to ¥534.0 billion (about U.S. $4.9 billion) up 6.4 percent from ¥501.8 billion (U.S. $4.6 billion) in the corresponding period a year ago, by zooming in on expanding markets against the backdrop of burgeoning resource development around the world and infrastructure development, particularly in emerging economies. These measures offset negative factors including sluggish demand in Japan and the United States and slowing demand in Europe as well as the Japanese yen’s appreciation.

Sales of industrial machinery and other operations made a substantial gain from the previous first-quarter period, thanks in part to the addition of Nippei Toyama Corp. as a consolidated subsidiary in March 2008.

Operating income registered an improvement of 4.5 percent from the corresponding period a year ago, despite profit-eroding factors, such as increased prices of raw materials. Net income for the first quarter period totaled ¥57.7 billion (US$534.2 million), up 2.2 percent from the previous first-quarter period.

Komatsu Ltd. is headquartered in Tokyo.