Komatsu’s Fourth-Quarter Profit Falls 25% as China Sales Drop
Stock Chart for Komatsu Ltd (6301)
Komatsu Ltd. (6301), the world’s second- largest maker of excavators, posted a 25 percent decline in fourth-quarter profit after Chinese sales declined.
Net income fell to 37.7 billion yen ($464 million) for the three months ended March 31 from 50.1 billion yen a year earlier, according to calculations based on full-year results reported by the Tokyo-based company today.
Industry sales for excavators built by foreign makers in China in the last financial year dropped a more-than-expected 37 percent to 70,000 units, according to Hitachi Construction Machinery Co. (6305), Komatsu’s closest domestic rival. Construction machinery makers are relying on resource projects in Indonesia and the U.S. and Japan’s efforts to rebuild areas hit by last year’s earthquake to make up for falling Chinese sales.
Komatsu today forecast net income will rise 14 percent to 190 billion yen in the year to March 2013.
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