Komatsu remains bullish about mining

Komatsu is optimistic about the outlook for its US$10 billion-a-year mining equipment business in its new fiscal year, starting April 1, less so about its mainstay construction arm.

The Japanese manufacturer has reiterated full-year projections for FY22 to March 31, made in October last year, for Y3460 billion (US$25.48 billion) total sales after delivering a 26% year-on-year lift for the first nine months of the year to Y2539.2b (US$18.72b).

Komatsu mining equipment sales surged 36% yoy in Q3 to Y372.9b (US$2.75b) and the company has maintained its full-year projection at Y1361.3b (US$10.4b), up 26% yoy.

It estimated global demand for mining equipment rose 9% in the last three months of 2022, compared with the previous corresponding period, and would be up more than 10% yoy in the 12 months to March 31, 2023.

“Demand remains strong and prices remain high, especially for coal mining, and customers are continuing to operate their mining equipment at high levels,” said Komatsu senior executive officer Masatoshi Morishita.

CFO Takeshi Horikoshi said the company was finalising its business planning for FY23 (to the end of March, 2024). “We expect mining demand to be solid,” he said. “But for construction equipment we cannot have an optimistic view.”


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