Increased sales in developed countries combined with the depreciation of the Japanese yen against the dollar were able to boost Komatsu’s sales numbers in fiscal year 2014, but not enough to stave off a dip in profit.
According to the company’s earnings report for fiscal year 2014, ending March 31, net sales increased 1.3 percent over 2013 to 1.978 trillion yen ($16.6 billion). Meanwhile, net income fell 3.5 percent to 154 billion yen ($1.3 billion).
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The company reports global demand for mining equipment remains low as does demand for construction and mining equipment in China. However, the company reports a “steady” increase in demand in North America and Europe.
Caterpillar vice president of financial services Mike DeWalt told Bloomberg last month Cat dealers have seen aggressive pricing due to the yen’s depreciation.
Looking forward, Komatsu says it expects a “more challenging” FY2015 as demand decreases in China and the mining sector offset continued gains in developed markets. It expects sales to fall 5 percent to 1.88 trillion yen ($15.8 billion) with profit falling 10 percent to 138 billion ($1.15 billion) yen.
The company plans to step-up its cost-cutting efforts and plans to bolster its recently-launched SmartConstruction service which leases fully-automated jobsites to Japanese customers by paring drones with its machines equipped with intelligent Machine Control.