Consolidated Business Results for the Fiscal Year Ended March 31, 2017 (U.S. GAAP)
Komatsu Ltd. today disclosed its consolidated business results (U.S. GAAP) for the fiscal year ended March 31, 2017 (FY2016) and announced projections for the fiscal year ending March 31, 2018 (FY2017). See below for a summary.
1. Results for the Fiscal Year Ended March 31, 2017 (FY2016)
For the fiscal year ended March 31, 2017, consolidated net sales decreased by 2.8% from FY2015, to JPY1,802.9 billion. Operating income decreased by 16.5% from FY2015, to JPY174.0 billion. Operating income ratio was 9.7%, down 1.5 percentage points from FY2015. Net income attributable to Komatsu Ltd. amounted by 17.5% from FY2015, to JPY113.3 billion.
In the construction, mining and utility equipment business, demand for construction and mining equipment remained slack in the Middle East and some other regions, but was strong mainly in China, CIS and Indonesia. As a result, sales improved from the previous fiscal year on a local currency basis; however, they declined from the previous fiscal year, as adversely affected by the Japanese yenfs appreciation. In the retail finance business, revenues decreased from the previous fiscal year, affected by the Japanese yenfs appreciation, even though there was an increase in assets in North America and some other regions. In the industrial machinery and others business, sales declined from the previous fiscal year, affected by reduced sales of presses and machine tools, especially to the automobile manufacturing industry.
2. Projections for the Fiscal Year Ending March 31, 2018 (FY2017)
In the construction, mining and utility equipment business, Komatsu expects an increase in sales for FY2017 from FY2016, as it anticipates a recovery of demand for mining equipment, which has been slack for the last few years, and the effects of adding Joy Global Inc., a leading U.S. manufacturer of mining equipment, to its consolidated accounting. Komatsu closed the acquisition of Joy Global Inc. and changed its trade name to Komatsu Mining Corp. in April 2017. With respect to profits, Komatsu projects a decline, mainly affected by a significant amount of temporary expenses (such as fair values of inventory assets in cost of sales and amortization of intangible assets) to record for the first year of acquisition.
In the retail finance business, Komatsu anticipates a decrease in revenues, affected by the Japanese yenfs appreciation. Meanwhile, Komatsu expects an increase in segment profit, as no more allowance will be needed for doubtful accounts in China.
In the industrial machinery and others business, Komatsu expects an increase in both sales and segment profit, as it anticipates an increase in the volume of sales of presses and machine tools.
As preconditions for our projection, we are assuming the foreign exchange rates as follows: USD1=JPY 105, EUR1=JPY 115 and RMB1=JPY 15.0.
3. Cash Dividends
Komatsu Ltd. is planning to set the fiscal year-end cash dividend at JPY29 per share. As a result, annual cash dividends for the year under review, including the interim cash dividend of JPY29 per share, amount to JPY58 per share. (Komatsu Ltd. is planning to propose the fiscal year-end dividend amount to the 148th ordinary general meeting of shareholders scheduled for June 20, 2017.)
Regarding annual cash dividends for the fiscal year ending March 31, 2018, the Company plans to set them at JPY 58 per share, the same amount for the fiscal year ended March 31, 2017.
Information in the news releases is current on the date of the announcement and is subject to change without notice.
2017/04/27
No. 006(2662)
KOMATSU Corporate Communications
TEL: 03(5561)2616
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Consolidated Business Results for the Fiscal Year Ended March 31, 2017 (U.S.
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