Komatsu forecasts 27.3% drop in operating profit

Komatsu said it expected an increase in sales volume and an improvement in selling prices within its construction, mining, and utility equipment business for the financial year ended 31 March 2026.

But it said sales are projected to decrease as a result of the appreciation of the Japanese yen and cost increases resulting from US tariff policy.

It also expects profit in the segment to decrease.

In its retail finance business, it also expects a decrease in sales and profits due to the appreciation of the Japanese yen.

Overall, the company forecast an 8.8% decline in net sales to 3.7 trillion yen (US$26 billion) and a 27.3% fall in operating income to 478 billion yen (US$3.3 billion).

The gloomier predictions for the year ahead came after a 6.2% rise in net sales in the year ended 31 March 2025, to 4.1 trillion yen (US$28.5 billion). Operating income rose 8.2% to 657.1 billion yen (US$4.6 billion).

Komatsu said that while sales for construction equipment fell during the year, sales of mining equipment increased.

The impact of the Japanese yen’s depreciation and the effect of improved selling prices in most regions of the world, also helped sales to increase on the previous fiscal year.

Those same factors also supported an increase in profits in the construction, mining and utility equipment business, which “more than offset” the adverse effects of reduced sales volume and cost increases.