Komatsu Ltd. has experienced steady growth through the first six months of its fiscal year, with an overall net sales increase and continuing demand in the construction and mining sectors, especially in North America.
During the six-month period between April 1 and September 30, 2023, the first half of Komatsu's fiscal year ending March 31, 2024, the company's consolidated net sales reached 1,823.0 billion Japanese yen, an increase of 12.6 percent from the corresponding period one year previous. In the three months ending September 30, 2023, net sales were 923.443 billion yen, up 8 percent. Operating income through six months came in at 296.976 billion yen, an increase of more than 40 percent.
Sales increases in the six-month period have been supported by expanded parts sales and service revenues, reflecting higher machine utilization, especially in mining equipment, the company noted. Operating income has risen thanks to improved selling prices in most regions of the world, along with a depreciation of the Japanese yen.
The Construction, Mining, and Utility Equipment segment of the Komatsu business reported net sales of 1,707.584 billion yen through six months, an increase of 12.6 percent over 2022.
North American sales were 459.444 billion yen, an increase of 20.6 percent through six months. Construction equipment sales in the Americas have seen signs of decrease in the housing sector, impacted by increasing interest rates, but remained steady in the rental industry, infrastructure development, and energy-related businesses. Mining has remained strong, and selling prices have improved.
Komatsu is projecting that through the remaining six months of its fiscal year, demand for mining equipment will remain steady, while demand for construction equipment is likely to slow due to concerns about economic uncertainty.
