Komatsu’s third-quarter earnings report showed minimal change compared to the previous year, as lower sales volumes were offset by favorable currency conversions and rising sale prices.
Third-quarter net sales came in at $6.4 billion, up 1.8% year-over-year. Profit in the quarter was up 6.8% to $1.1 billion. Komatsu’s construction, mining and utility equipment segment brought in $6 billion in the third quarter, unchanged from what Komatsu saw in its previous third quarter. Quarterly profit in this segment, however, was down 1.4% to $950 million.
The company attributed the unchanged net sales in the segment to the positive effects of the Japanese yen’s depreciation and higher selling prices, which compensated for decreased sales volumes.
Third-quarter construction, mining and utility net sales in North America specifically rose less than 1% to $1.7 billion. Komatsu reported that demand for its top seven products increased 3% year-over-year in the third quarter, with rental and energy demand decreasing. The company forecasts construction, mining and utility equipment demand to decrease 5% to 10% year-over-year for its full 2024 fiscal year.
Parts sales were up 5% year-over-year in Komatsu’s third quarter.
In 3Q FY2024, sales of parts increased by 5% from the corresponding period a year ago, to $1.6 billion. Full year parts sales are forecast to increase 5% overall to $6.6 billion.
Looking at Komatsu’s last nine months of business, net sales rose 5.8% to $19.2 billion, and segment profit rose 3.6% to $3 billion. Komatsu’s construction, mining and utility business brought in $17.8 billion in the company’s last nine months, up 4.7% year-over-year. Profit in the same period, however, was down 1.1% to $2.8 billion.
North American construction, mining and utility sales for Komatsu’s last nine months were down 4.1% to $4.9 billion.
Net sales for Komatsu’s total 2024 financial year are still estimated to increase 3.2% to $25.8 billion.
Currency conversions as of February 12.
