Operating profit down at Komatsu

Equipment manufacturer Komatsu reported a -5.9% fall in operating profit for the first quarter to JPY 52.4 billion (US$ 535 million). Revenues also fell -3% year-on-year for the three months to the end of June to JPY 455 billion (US$ 4.6 billion).

Komatsu reported a decline in demand for construction and mining equipment in Indonesia and reduced demand for mining equipment in Latin America. However, it said sales of construction equipment had increased in Japan and the Middle East.

For the fiscal year ending 31 March, 2014, Komatsu said it expected to achieve a +8.8% increase in revenues to JPY 2.1 trillion (US$ 21 billion) and a +44.1% jump in operating income to JPY 305 billion (US$ 3.1 billion). This full-year forecast is unchanged against the outlook Komatsu gave in April, and is based on an expected increase in demand for construction equipment in Japan and North America.