Komatsu forecasts 27% profit decline this year amid tariff uncertainty

Komatsu

28/04/2025 06:43

TOKYO, April 28 (Reuters) - Top Japanese construction machinery maker Komatsu 6301.T on Monday forecast a 27% decline in operating profit this financial year citing a stronger yen and higher costs stemming from new U.S. tariffs.

The company expects operating profit of 478 billion yen  ($3.33 billion) for the business year to March 2026, after recording a profit of 657.1 billion yen in the just-ended business year, which marked an 8.2% growth.

The 2024/25 result also beat analysts' mean estimate of 605.7 billion yen, according to data compiled by LSEG.

Revenues came to 4.1 trillion yen and net income 439.6 billion yen.

Komatsu, the world's second-largest heavy equipment maker after U.S. rival Caterpillar CAT.N, earns more than a quarter of its sales from North America, making it vulnerable to repercussions of President Donald Trump's trade policy.

The company also said it would buy back up to 4.3% of its outstanding shares for 100 billion yen and cancel them.

($1 = 143.4200 yen)

 (Reporting by Kantaro Komiya
Editing by Chang-Ran Kim)

 ((kantaro.komiya@thomsonreuters.com; X: @kantarokomiya;))