In the first quarter (three months from April 1 to June 30, 2011) of the second year of the ongoing management plan, demand for construction and mining equipment continued to remain brisk in Strategic Markets, especially in Asia, while it declined in China and some other countries. In Traditional Markets, demand recovered steadily. Demand for industrial machinery continued to recover slowly. Against this backdrop, consolidated net sales increased to JPY494.1 billion (USD6,101 million, at USD1=JPY81) for the first quarter under review, up 10.5% from the corresponding period a year ago.
In the first quarter under review, the Japanese currency appreciated against the U.S. dollar and Renminbi more than the previous first quarter a year ago; however, Komatsu expanded the volume of sales, while improving selling prices as well as production and other costs. As a result, operating income for the first quarter advanced to JPY68.3 billion (USD844 million), up 26.4% from the corresponding period a year ago. Similarly, operating income ratio improved by 1.7 percentage points to 13.8%. Income before income taxes and equity in earnings of affiliated companies increased by 36.6% to JPY68.4 billion (USD845 million). Net income attributable to Komatsu Ltd. totaled JPY55.7 billion (USD688 million), an improvement of 81.5%.

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