Komatsu Ltd. has reported continued sales growth through the third quarter of its fiscal year, contributing to a strong result over nine months that is expected to lead to a full year of overall growth.
The company reported an increase of 5.6 percent in net sales during the three months ending December 31, 2023, rising to 971.996 billion yen. Operating income in the quarter rose to 156.445 billion yen, up 15.9 percent year-over-year, and overall net income attributable to Komatsu Ltd. was up by 42.4 percent to 98.719 billion yen.
Over the nine months of the fiscal year ending March 31,2024, Komatsu Ltd. reported a 10.1 percent increase in net sales to 2,794.99 billion yen, and a rise of 30.8 percent in operating income, reaching 453.421 billion yen.
Through nine months, the Construction, Mining and Utility Equipment segment of Komatsu's business has experienced a 10.8 percent increase in net sales, and a 38.9 percent jump in segment profit. Demand for construction equipment decreased in Latin America, Europe, and Asia, but remained steady in North America, the company reported. Sales in North America are up by 17.9 percent through nine months. Demand has declined in the housing sector but remained steady in rental, infrastructure development, and the energy-related sector.
Mining equipment demand remained strong. Sales increases year-over-year were supported by expanded parts sales and service revenues reflecting higher machine utilization, centering on mining equipment. Selling prices in most regions of the world were improved.
Komatsu continues to project a small increase in net sales of 3.3 percent through the end of the fiscal year, along with an 11.7 percent rise in operating income.