Helped by strong demand for construction and mining equipment in North America and Asia, Komatsu’s sales rose 25% year-over-year to 1,618.7 billion yen for the first six months of its fiscal year ending March 31, 2023.
For the three months ending October 31, construction, mining and utility equipment segment sales increased by 34% to JPY 791 billion. Sales improved in all regions except for CIS (-16%), with North America (70%), Asia (63%) and Latin America (39%) posting especially strong results.
Despite continued supply chain disruptions, Komatsu says it has steadily captured expanding demand for new equipment by capitalizing on cross-sourcing.
The company’s profits for the period also increased sharply during the period. Komatsu attributed the 55% increase to the Japanese yen's depreciation, and improved selling prices in many regions in the construction, mining and utility equipment business, which more than offset the adverse effects of increased prices of materials and logistics costs.
The company has revised its full-year forecast for fiscal year 2022, estimating 15% higher net sales than originally projected.
“In the construction, mining and utility equipment business, Komatsu projects demand will remain strong in North America and Asia. While there are concerns about an economic slowdown due to rising interest rates, supply shortages caused by disruptions in the supply chain are expected to improve. Komatsu projects business results to outperform its initial projection, as Komatsu has been making good progress in the improvement of selling prices,” the company said in a statement to investors.