Komatsu Posts Higher Fiscal Q1 Earnings, Sales Amid Weaker Yen
Komatsu's (TYO:6301) earnings and sales for the first quarter of the 2026 fiscal year grew as a weak yen brought positive results to some of its major business segments.Net income attributable to shareholders rose 5.4% to 96.2 billion Japanese yen in the three months to June 30 from 91.2 billion yen a year earlier, according to the heavy equipment manufacturer's earnings report published Wednesday.Operating income climbed 8% to 151.6 billion yen from 140.4 billion yen in the previous year.Net sales jumped 15% to 1.043 trillion yen from 909.5 billion yen.The company said the positive effects of the weaker yen have been a major factor in the growth of its sales in its business segments of construction, mining and utility equipment and retail finance.Meanwhile, the automotive industry's demand for large presses and higher sales of excimer laser-related maintenance services for the semiconductor industry were the drivers of the industrial machinery segment's profit growth.Komatsu lowered its projected sales decline and losses linked to the Middle East conflict and the impact of the U.S. tariffs. The company expects its sales to drop to 46.3 billion yen, lower than the previously projected sales decline of 90.1 billion yen in April as the U.S. and Iran momentarily hold a ceasefire while working on a deal that could reopen the Strait of Hormuz. Losses from costs due to the tariffs are expected to be 25.8 billion yen, narrower than the April outlook of 37.8 billion yen, after tariff rates for steel and aluminum were reduced to 15% from 25% in June.However, the expected losses attributed to costs linked to the Middle East war widened to 23.2 billion yen from 18.8 billion yen due to additional inland transportation costs linked to changes in logistics routes.
