Decreases in demand for construction and mining equipment in Indonesia and mining equipment in Latin America led to year-over-year declines in both net sales and operating income for Komatsu in the company’s first quarter, which ends March 31, 2014.
However, expanded sales of construction equipment and parts in Japan and the Middle East largely compensated for those demand declines, keeping the Japanese equipment maker confident that it will still achieve the large gains in both sales and operating incomes that it predicted back in April.
Komatsu saw its net sales dwindle 3 percent to $4.6 billion (455.1 billion yen) from the same period a year ago. Operating income fell 6 percent to $534 million.
Construction, mining and utility equipment net sales were down 3.1 percent year-over-year to $4.2 billion (416.6 billion yen), while industrial machinery net sales fell 6.3 percent to $411 million (40.3 billion yen).
According to the company’s report, it retains a positive outlook for the fiscal year, expecting net sales increase to increase 9 percent to $21 billion (205 billion yen) and operating income to grow 44 percent to $3.1 billion (305 billion yen).