FCC

Komatsu sales jump 28% in third quarter

2023-02-22

Despite supply chain disruptions and increases in material prices and logistic costs, Komatsu saw net sales and operating income reach record highs on new equipment, parts and services in the first nine months of the current fiscal year, which ends March 31, 2023.

The Japan-based company cited increased selling prices and a weaker yen for the increase. However, as the yen appreciates more than expected, the outlook for construction equipment demand is becoming increasingly uncertain in Europe and the US.

For construction, mining and utility equipment, Komatsu sales increased by 28.4 per cent year-on-year to 2,363.2 billion yen. Sales were up in all regions, except for the Commonwealth of Independent States (CIS), which includes Russia, Ukraine and former USSR-member countries, and China. The company said there were particularly sharp sales increases in North America, Asia and Latin America.

According to company officials, sales increased mainly due to the positive effect of foreign exchange rates, increased volume and improved selling prices.

Takeshi Horikoshi, chief financial officer, said that in the third quarter, sales volume was actually a little lower than expected. “This is not about demand. It's more about the supply chain, which had an impact, especially in North America, Japan, and Komatsu Mining Corporation,” he said. “Volume was lower than expected, especially for original equipment. Therefore, in terms of sales volume, we underperformed. But foreign exchange gains helped, and part sales overachieved, meaning that there was a product mix gain.”