Komatsu Falls as Operating Profit Slips to Three-Year Low

Komatsu Ltd. shares fell before the close after posting its lowest operating profit since 2022, dragged down by a stronger yen, lower shipment volumes and rising costs in its mainstay construction, mining and utility equipment business.

Second-quarter operating profit fell to ¥136.7 billion ($898 million) — ahead of the average analyst estimate of ¥128.9 billion — as a ¥22.8 billion hit from currency effects on the company’s top line trickled down to earnings. Sales of mining and construction machinery to Indonesia fell as coal prices declined and public investment slowed, the company said in a Wednesday statement.