Komatsu Falls on Report Profit Declined on China: Tokyo Mover
Komatsu Ltd. (6301), the world’s second- biggest maker of construction equipment, fell after a Nikkei newspaper report said the company’s first-quarter operating profit declined for the first time in 10 quarters.
The stock fell as much as 3.8 percent to 1,696 yen and traded 3.2 percent lower at 9:33 a.m. in Tokyo trading, extending its loss this year to 5.2 percent.
Komatsu’s operating profit probably fell about 20 percent to 56 billion yen ($714 million) in the April-to-June quarter after sales of construction equipment in China halved due to lower public works spending, the Nikkei reported on July 28, without saying where it got the information. Higher sales from Japan and North America failed to offset the slump in China, the paper said.
Full-year earnings will probably be below the company’s earlier forecast, the Nikkei report said. Operating profit may rise 23 percent to 315 billion yen for the financial year to March 2013, the company said in April.
Komatsu said today in a statement that it’s not the source of the Nikkei report and that it will announce results for the period tomorrow.
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