Komatsu Ltd S/Adr (KMTUY) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

I'm Hosotani, the CFO. First of all, I'd like to address what happened the other day, which was an earthquake that originated in Kumamoto Prefecture, and I'd like to explain, extend my condolences to the people who were affected. We have been able to confirm the safety of our people. The operations of our facilities and so forth. We are currently in the midst of the confirmation process. We would like to extend our prayers for early recovery. Now, I'd like to explain the first quarter business results for the first three months ended June 30th, 2026. Page 4 shows the highlights for the first quarter of fiscal 26. FX rates were 158.5 yen to the US dollar, 184.6 yen to the euro and 112.6 yen to the Australian dollar. Compared to the same period of the previous year, the yen depreciated against the US dollar, the euro and the Australian dollar. Net sales increased by 14.7% year-on-year to 1,043.1 billion yen. Operating income increased by 8% to 151.6 billion. The operating income ratio was 14.5%, down 0.9 percentage points year-on-year. Net income increased by 5.4% year-on-year to 96.2 billion yen. Net sales reached a record high for a first quarter. Page 5 shows segment sales and profits for the first quarter of fiscal 26. Net sales of construction, mining, and utility equipment increased by 14.4% year-on-year to 956.9 billion yen. Segment profits increased by 6.4% to 130.1 billion yen, and the segment profit ratio decreased by 1 percentage point to 13.5%. Sales of retail finance increased by 7.4% year-on-year to 32.7 billion yen and segment profits increased by 2.8% to 9.6 billion. Sales of industrial machinery and others increased by 21.7% year-on-year to 52.9 billion yen and segment profit increased by 25.1% to 9 billion yen. I will explain the factors behind change...