In the face of falling demand for mining equipment, Komatsu Ltd. saw net sales for the six months ended September 30 hold nearly steady, with just a 0.6-percent drop compared to the same period in 2012 to 925.1 billion yen ($9.4 billion).
Operating income slipped 2.1 percent to 108.9 billion yen ($1.1 billion).
Komatsu’s quarterly business-results press release says the company worked to compensate for lower-than-projected demand for mining equipment mainly by expanding sales volume of construction equipment in Japan, where demand has been steady, and in China where demand has turned up.
Sales and profit in the company’s industrial-machinery segment increased for the period, supported by steady sales of sheet-metal and press machines, including large presses.
Komatsu projects sales volume in construction, mining and utility equipment in Japan and China will outperform the company’s first-of-the-year forecasts. But demand for mining equipment in Latin America, Oceania and Asia/Indonesia continues to linger well below Komatsu's estimates. Sales of Komatsu’s construction, mining and utility equipment business segment overall will fall short of the copany’s projections.
Komatsu reduced its 2013 sales outlook 9.3 percent to 1,860.0 billion yen ($19.3 billion) – 1.3 percent less than its 2012 sales. The company cut its operating-income projection 31.1 percent 210.0 billion yen ($2.2 billion) – 0.7 percent below 2012.