Komatsu Ltd. (6301), the world’s second-largest maker of construction equipment, dropped the most in more than four years in Tokyo trading after trimming its full-year profit forecast.
The shares fell as much as 8.6 percent to 2,155 yen on the Tokyo Stock Exchange and were down 183 yen at 2,175 yen as of 10:11 a.m., headed for their biggest decline since Jan. 13, 2009. Komatsu was the biggest decliner among companies in the Nikkei (NKY) 225 Stock Average.
Komatsu, which sells large dump trucks and excavators to customers such as Rio Tinto Group and BHP Billiton Ltd. (BHP), said yesterday that demand for mining equipment may fall 50 percent in the 12 months ending March 31. Net income is estimated at 136 billion yen ($1.39 billion) this fiscal year, down from the 184 billion yen the company projected in July and missing the 177 billion yen estimate of 24 analysts compiled by Bloomberg.
“With a large earnings downward revision and an ambiguous recovery outlook in mining equipment, we think the upside in the valuation is limited,” Yukihiro Kumagai, an analyst at Jefferies Group LLC, said in a report dated yesterday. The firm cut the rating on the stock to hold from buy.
The revision also prompted analysts from Nomura Securities Co., and Goldman Sachs Group Inc. to cut their ratings on the stock.
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