Edgar Filing: KOMATSU LTD

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Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February, 2012

COMMISSION FILE NUMBER: 1-7239

KOMATSU LTD.

Translation of registrant’s name into English

3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan

Address of principal executive office

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

INFORMATION TO BE INCLUDED IN REPORT

A company announcement made on January 31, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


						KOMATSU LTD.
						(Registrant)

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Komatsu Ltd.

Corporate Communications Dept.

Tel: +81-(0)3-5561-2616

Date: January 31, 2012

URL: http://www.komatsu.com/

Consolidated Business Results for Nine Months of the Fiscal Year Ending

March 31, 2012 (U.S. GAAP)

1. Results for Nine Months Ended December 31, 2011

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

		September 30,		September 30,		September 30,		September 30,
	Millions of yen except per share amounts
	Nine months ended December 31, 2011		Nine months ended December 31, 2010		Changes
	[A]		[B]		[A-B]		[(A-B)/B]
Net sales		1,448,509		1,301,973		146,536		11.3	%
Operating income		191,835		162,747		29,088		17.9	%
Income before income taxes and equity in earnings of affiliated companies		185,691		158,903		26,788		16.9	%
Net income attributable to Komatsu Ltd.		129,376		100,622		28,754		28.6	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic	¥	133.86	¥	103.97	¥	29.89
Diluted	¥	133.75	¥	103.91	¥	29.84

Note:

Comprehensive income (loss):

Nine months ended December 31, 2011: 77,038 millions of yen

Nine months ended December 31, 2010: 46,829 millions of yen

(2) Consolidated Financial Position

		September 30,			September 30,
	Millions of yen except per share amounts
	As of December 31, 2011			As of March 31, 2011
Total assets		2,228,145			2,149,137
Total equity		969,722			972,680
Komatsu Ltd. shareholders’ equity		927,765			923,843
Komatsu Ltd. shareholders’ equity ratio		41.6	%		43.0	%
Komatsu Ltd. shareholders’ equity per share (Yen)	¥	974.52		¥	954.48

2. Dividends

(For the fiscal years ended March 31, 2011 and ending March 31, 2012)

September 30,

Yen

The entire FY ending March 31, 2012

The entire FY ended
March 31, 2011

Results

Projection

First quarter period

Second quarter period

21.00

—

18.00

Third quarter period

Year-end

—

21.00

20.00

Total

42.00

38.00

Note: Changes in the projected cash dividend as of January 31, 2012: None

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3. Projections for the Fiscal Year Ending March 31, 2012

(From April 1, 2011 to March 31, 2012)

		September 30,		September 30,
	Millions of yen except per share amounts The full fiscal year
			Changes
Net sales		2,050,000		11.2	%
Operating income		282,000		26.5	%
Income before income taxes and equity in earnings of affiliated companies		276,000		25.6	%
Net income attributable to Komatsu Ltd.		186,000		23.4	%
Net income attributable to Komatsu Ltd. per share (basic) (Yen)		¥192.99

Notes: 1) Changes in the projected consolidated business results as of January 31, 2012: None

2) Percentages shown above represent the rates of change compared with the corresponding period a year ago.

4. Others

(1)	Changes in important subsidiaries during the Nine months ended December 31, 2011: Applicable

Removed (merger): 1 company

Komatsu Utility Co., Ltd.

(2)	Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None

(3)	Changes in accounting standards, procedures and presentations for the preparation of consolidated quarterly financial statements

Changes resulting from revisions in accounting standards, etc.: None

Change in other matters except for 1) above: None

(4)	Number of common shares outstanding

The numbers of common shares issued (including treasury stock) were as follows:

As of December 31, 2011: 998,744,060 shares

As of March 31, 2011: 998,744,060 shares

The numbers of shares of treasury were as follows:

As of December 31, 2011: 46,720,785 shares

As of March 31, 2011: 30,841,419 shares

The weighted average numbers of common shares outstanding were as follows:

Nine months ended December 31, 2011: 966,471,670 shares

Nine months ended December 31, 2010: 967,788,140 shares

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[Reference]

Results for Three Months Ended December 31, 2011

		September 30,		September 30,		September 30,			September 30,
	Millions of yen except per share amounts
	Three months ended December 31, 2011		Three months ended December 31, 2010		Changes
	[A]		[B]		[A-B]			[(A-B)/B]
Net sales		462,642		442,210		20,432			4.6	%
Operating income		58,886		58,835		51			0.1	%
Income before income taxes and equity in earnings of affiliated companies		55,448		58,792		(3,344	)		(5.7	)%
Net income attributable to Komatsu Ltd.		34,701		36,858		(2,157	)		(5.9	)%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic		36.01		38.09		(2.08	)
Diluted		35.98		38.06		(2.08	)

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Appendix


Management Performance and Financial Conditions

(1) Outline of Operations and Business Results			P.8
(2) Financial Conditions			P.12
(3) Projections for the Fiscal Year Ending March 31, 2012			P.13

Financial Statements
(1) Condensed Consolidated Balance Sheets			P.14
(2) Condensed Consolidated Statements of Income			P.16
(3) Consolidated Statements of Equity			P.18
(4) Consolidated Statements of Cash Flows			P.19
(5) Note to the Going Concern Assumption			P.20
(6) Business Segment Information			P.20
(7) Note in Case of Notable Change(s) in the Amount of Shareholders’ Equity			P.21

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Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) have embarked on the　Global Teamwork for Tomorrow mid-range management plan for three years, to be completed in the fiscal year ending March 31, 2013. Under this management plan, Komatsu is focusing its efforts on (1) promotion of ICT (Information and Communication Technology) applications to products and parts, (2) further advancement of environmental friendliness and safety in machine performance, (3) expansion of sales and service operations in Strategic Markets, and (4) promotion of continuous Kaizen (improvement) by strengthening workplace capability.

The second year of the ongoing mid-range management plan included the nine months from April 1 to December 31, 2011 of the fiscal year ending March 31, 2012. During those nine months, while demand for construction, mining and utility equipment declined sharply in China from the corresponding period a year ago, it increased in other Strategic markets and Traditional Markets. Demand was particularly strong for mining equipment. In addition, Komatsu quickly recovered normal production from the adverse effects of the Great East Japan Earthquake of March last year, captured growth in demand for equipment accurately and expanded sales. As a result, Komatsu advanced nine-month sales in the construction, mining and utility equipment business. In the industrial machinery and others business, while sales of wire saws declined from the corresponding period a year ago, Komatsu increased nine-month sales from the corresponding period a year ago by stepping up sales of presses, machine tools and temporary housing units in addition to consolidating Gigaphoton Inc. As a result, consolidated net sales advanced by 11.3% to JPY1,448.5 billion (USD18,812 million, at USD1=JPY77).

In the nine-month period under review, while the Japanese currency appreciated more against the U.S. dollar, Euro and Renminbi than the corresponding period a year ago, Komatsu expanded the volume of sales while continuing to improve selling prices and as well as production and other costs. As a result, Komatsu improved sales and profits in both construction, mining and utility equipment and industrial machinery and others businesses. Operating income for the nine-month period increased by 17.9% from the corresponding period a year ago, to JPY191.8 billion (USD2,491 million). Similarly, operating income ratio improved by 0.7 percentage points to 13.2%. Income before income taxes and equity in earnings of affiliated companies advanced by 16.9% to JPY185.6 billion (USD2,412 million). Net income attributable to Komatsu Ltd. totaled JPY129.3 billion (USD1,680 million), showing an improvement of 28.6% from the corresponding period a year ago.

In the third quarter (three months from October 1 to December 31, 2011) compared to the corresponding period a year ago, while the Japanese currency appreciated more against major currencies, Komatsu advanced both sales and profits of the construction, mining and utility equipment business by working to improve selling prices and cut down production and other costs, as demand increased steadily worldwide, except for China. In the industrial machinery and others business, meanwhile, both sales and profits declined, as adversely impacted by downturned sales of wire saws from the second quarter of the current fiscal year. As a result, for the third quarter under review, consolidated sales increased by 4.6% from the previous third quarter, to JPY462.6 billion (USD6,008 million), operating income, up by 0.1% to JPY58.8 billion (USD765 million), income before income taxes and equity in earnings of affiliated companies, down by 5.7% to JPY55.4 billion (USD720 million), and net income attributable to Komatsu Ltd., down by 5.9% to JPY34.7 billion (USD451 million).

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Note:

Sales and profit figures stated in this news release show accumulated figures for the nine-month period　from April 1 through December 31, 2011, unless otherwise footnoted.

[Markets as Positioned by Komatsu]


Traditional Markets		Japan, North America and Europe
Strategic Markets		China, Latin America, Asia, Oceania, Africa, Middle East and CIS

[Consolidated Financial Highlights] (Nine months)

		September 30,		September 30,		September 30,
	Millions of yen
	Nine months ended December 31, 2011 1USD=JPY79 1EUR=JPY111 1RMB=JPY12.3		Nine months ended December 31, 2010 1USD=JPY86 1EUR=JPY112 1RMB=JPY12.8		Changes
	[A]		[B]		[(A-B)/B]
Net sales		1,448,509		1,301,973		11.3	%
Operating income		191,835		162,747		17.9	%
Income before income taxes and equity in earnings of affiliated companies		185,691		158,903		16.9	%
Net income attributable to Komatsu Ltd.		129,376		100,622		28.6	%

[Consolidated Financial Highlights] (Three months)

		September 30,		September 30,		September 30,
	Millions of yen
	Three months ended December 31, 2011 1USD=JPY78 1EUR=JPY105 1RMB=JPY12.3		Three months ended December 31, 2010 1USD=JPY82 1EUR=JPY110 1RMB=JPY12.4		Changes
	[A]		[B]		[(A-B)/B]
Net sales		462,642		442,210		4.6	%
Operating income		58,886		58,835		0.1	%
Income before income taxes and equity in earnings of affiliated companies		55,448		58,792		(5.7	)%
Net income attributable to Komatsu Ltd.		34,701		36,858		(5.9	)%

Business results by operation are described below.

[Sales by Operation]

September 30,

Millions of yen

Nine months ended
December 31, 2011

Nine months ended
December 31, 2010

Changes

[A]

[B]

[(A-B)/B]

Construction, Mining and Utility Equipment

1,265,104

1,146,921

10.3

Industrial Machinery and Others

183,405

155,052

18.3

Total

1,448,509

1,301,973

11.3

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Construction, Mining and Utility Equipment

While demand dropped sharply in China from the corresponding period a year ago as adversely affected by the credit squeeze measure, demand steadily increased in other Strategic markets as well as Traditional Markets, i.e., Japan, North America and Europe. Against the backdrop of thriving demand for commodities and energy, sales of mining equipment expanded, especially in Latin America and Indonesia. Moreover, reflecting increased machine population, both parts sales and service revenues improved steadily. As a result, consolidated net sales of construction, mining and utility equipment expanded by 10.3% from the corresponding period a year ago, to JPY1,265.1 billion (USD16,430 million). Komatsu continued to strengthen its operation to flexibly meet changes of retail demand by utilizing KOMTRAX (Komatsu Machine Tracking System) information concerning machine use in different regions of the world, centering on the Global HANSEI Operation Center, a global sales and production planning control center which opened in May last year. At the same time, Komatsu also worked to launch HB205 and 215LC hybrid hydraulic excavators outside of Japan and expand sales of new emission standards-compliant models in North America and Europe.

[Sales of Construction, Mining and Utility Equipment by Region]

		September 30,		September 30,		September 30,			September 30,
	Millions of yen
	Nine months ended December 31, 2011		Nine months ended December 31, 2010		Changes
	[A]		[B]		[A-B]			[(A-B)/B]
Japan		207,127		187,029		20,098			10.7	%
Americas		321,693		281,725		39,968			14.2	%
Europe & CIS		147,157		112,849		34,308			30.4	%
China		149,837		220,049		(70,212	)		(31.9	)%
Asia* & Oceania		346,216		271,123		75,093			27.7	%
Middle East & Africa		93,074		74,146		18,928			25.5	%
Total		1,265,104		1,146,921		118,183			10.3	%

*	Excluding Japan and China

Japan

While demand for construction equipment advanced mainly from rental companies for use in the recovery and reconstruction of the earthquake and tsunami-stricken regions, Komatsu quickly resumed production and supplied equipment smoothly. As a result, nine-month sales increased from the corresponding period a year ago. To get ready for a large number of equipment needed for full-scale reconstruction projects in the disaster-devastated regions, Komatsu opened the Tohoku Service Center of the Tohoku Operation Department and the Miyagi Center of Komatsu Safety Training Center Ltd., expanding service operations to support those projects in the Tohoku region. In an assistance effort for the disaster-devastated regions, Komatsu decided on free-of-charge lending of equipment owned by the Komatsu Group worth about JPY800 million in November last year in addition to the ongoing assistance of the same value since March last year, totaling JPY1.6 billion.

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Americas

In North America, while the recovery of demand for construction equipment in the housing sector was still lacking in momentum, demand in the rental, energy and mining industries expanded firmly. Komatsu continued efforts to expand sales of the new emission standards-compliant models and new hybrid hydraulic excavators, which were launched during the first quarter of the current fiscal year, while facilitating the Zero Inventory Campaign at distributors. In Latin America, demand in Brazil, the largest Latin American market for construction equipment, remained sluggish in the civil engineering sector as mainly affected by the economic slowdown and belated start of public works. Meanwhile, demand for mining equipment continued to expand, centering on Chile. As a result, nine-month sales in the Americas increased from the corresponding period a year ago.

Europe & CIS

In Europe, while concerns over economic slowdown remained against the backdrop of fiscal problems, demand for construction equipment increased steadily in major markets of Germany and France. Komatsu worked to expand sales of parts and launched new emission standards-compliant models and hybrid hydraulic excavators. In CIS, demand for equipment advanced firmly in the mining sector especially for coal and gold, as well as in the energy sector for oil and natural gas. As a result, nine-month sales in Europe & CIS increased from the corresponding period a year ago. At Komatsu Manufacturing Rus LLC, Komatsu began production of the HD785 large dump truck mainly for use in mining, following the initial production of hydraulic excavators. In October last year, Komatsu reached an agreement with the Pacific National University and the State Government of Khabarovsk to offer cooperation in human resource development for construction, mining and road construction equipment in far eastern Russia.

China

As the government’s credit squeeze measure remained in place, the start of new construction projects was delayed by lack of funds, resulting in a sharp decline in demand for equipment, especially in the civil engineering sector. Nine-month sales in China decreased from the corresponding period a year ago. By anticipating mid to long-term market growth in China in spite of the current business conditions, Komatsu made capital investment in order to achieve production capable of responding to demand changes flexibly. Following Japan, North America and Europe, Komatsu organized the China Midori-kai for local suppliers. By teaming up with local suppliers, Komatsu is going to improve the QCD (quality, cost and delivery) of products, thereby further enhancing Komatsu’s “Monozukuri” competitiveness in China.

Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand continued to expand for mining equipment, while that for construction equipment remained strong in the civil engineering, agriculture and forestry sectors as well. Demand for construction equipment also increased steadily in India, Malaysia and other countries in Asia. In Australia, demand was brisk, centering on mining equipment. Against this backdrop, nine-month sales in Asia &

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Oceania advanced from the corresponding period a year ago. In Thailand, while some suppliers were flooded last year, Komatsu did not suffer a big impact on sales and production and continued normal operations. In November last year, Komatsu and Rio Tinto signed a Memorandum of Understanding to operate over 150 driverless dump trucks in iron ore mines in Australia by the end of 2015.

Middle East & Africa

While unstable political and social conditions continued in some countries, demand advanced, centering on mining equipment in Africa. Under such an environment, nine-month sales in the Middle East & Africa improved from the corresponding period a year ago. Komatsu expects that demand for equipment will continue to expand for mining and infrastructure development. To meet this increase in demand, Komatsu continued efforts to reinforce its sales and product support operations by introducing KOMTRAX-installed standard construction equipment in South Africa. To improve parts supply operation jointly with distributors in Southern Africa, Komatsu also began preparation to open a new parts depot in March this year.

Industrial Machinery and Others

Sales of wire saws for the third quarter decreased from the second quarter of the current fiscal year, as adversely affected by the Chinese government’s credit squeeze measure, by reduced subsidies related to solar energy in Europe and by the lowered price for silicon wafers, the basic material for solar cells. As a result, nine-month sales of wire saws declined from the corresponding period a year ago. Meanwhile, capital investment by the automobile manufacturing industry upturned for recovery, and sales of presses and machine tools advanced. Sales of temporary housing units also increased. With respect to damages caused by the flood in Thailand, Komatsu worked to rebuild service operation by dispatching engineers from Japan and making other efforts such as repairing customers’ machines starting in December last year. Since the second quarter of the current fiscal year, Komatsu has included sales and profits of Gigaphoton in the consolidated financial statements. Gigaphoton became a wholly owned subsidiary in the first quarter. As a result, nine-month sales of the industrial machinery and others businesses increased by 18.3% from the corresponding period a year ago, to JPY183.4 billion (USD2,382 million).

(2) Financial Conditions

As of December 31, 2011, total assets amounted to JPY2,228.1 billion (USD28,937 million), registering an increase of JPY79.0 billion from the previous fiscal year-end, mainly reflecting increased inventories. Interest-bearing debt increased by JPY123.8 billion from the previous fiscal year-end, to JPY667.8 billion (USD8,674 million). Komatsu Ltd. shareholders’ equity increased by JPY3.9 billion from the previous fiscal year-end, to JPY927.7 billion (USD12,049 million). As a result, Komatsu Ltd. shareholders’ equity ratio decreased by 1.4 percentage points from the previous fiscal year-end, to 41.6%. Net debt-to-equity ratio* was 0.61 compared to 0.50 as of the previous fiscal year-end.

*	Net debt-to-equity ratio = (Interest-bearing debt – Cash and cash equivalents – Time deposits) / Komatsu Ltd. shareholders’ equity

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For the nine-month period under review, net cash provided by operating activities amounted to JPY60.8 billion (USD791 million), a decrease of JPY72.0 billion from JPY132.9 billion for the corresponding period a year ago, mainly due to increased inventories. Net cash used in investing activities totaled JPY98.2 billion (USD1,276 million), an increase of JPY33.3 billion from the corresponding period a year ago, mainly due to the purchase of fixed assets as well as shares of subsidiaries and equity investees. While cash was used in repurchasing its own shares for retirement and dividend payments, net cash provided by financing activities amounted to JPY62.0 billion (USD806 million) due to procurement of long-term debt and an increase in short-term debt, compared to net cash of JPY59.6 billion used for the corresponding period a year ago. Furthermore, after adding the effects of foreign exchange fluctuations, cash and cash equivalents, as of December 31, 2011, totaled 103.6 billion (USD1,346 million), an increase of JPY19.3 billion from the previous fiscal year-end.

(3) Projections for the Fiscal Year Ending March 31, 2012

(From April 1, 2011 to March 31, 2012)

On October 27, the Company revised its projections of business results for the fiscal year ending March 31, 2012, which are shown on page 2 of this release.

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

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Financial Statements

(1)

Condensed Consolidated Balance Sheets

Assets

September 30,

Millions of yen

As of December 31, 2011

As of March 31, 2011

Ratio (%)

Current assets

Cash and cash equivalents

103,619

84,224

Time deposits

1,183

734

Trade notes and accounts receivable

495,364

532,757

Inventories

577,075

473,876

Deferred income taxes and other current assets

159,841

152,781

Total current assets

1,337,082

60.0

1,244,372

57.9

Long-term trade receivables

176,662

7.9

183,270

8.5

Investments

Investments in and advances to affiliated companies

19,358

25,115

Investment securities

42,272

60,855

Other

3,268

3,124

Total investments

64,898

2.9

89,094

4.1

Property, plant and equipment

- Less accumulated depreciation

520,517

23.4

508,387

23.7

Goodwill

30,626

1.4

29,321

1.4

Other intangible assets

57,675

2.6

53,971

2.5

Deferred income taxes and other assets

40,685

1.8

40,722

1.9

Total

2,228,145

100.0

2,149,137

100.0

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Liabilities and Equity

September 30,

Millions of yen

As of December 31, 2011

As of March 31, 2011

Ratio (%)

Current liabilities

Short-term debt

235,311

130,308

Current maturities of long-term debt

149,944

122,608

Trade notes, bills and accounts payable

276,619

308,975

Income taxes payable

15,664

38,829

Deferred income taxes and other current liabilities

214,066

199,268

Total current liabilities

891,604

40.0

799,988

37.2

Long-term liabilities

Long-term debt

282,617

291,152

Liability for pension and retirement benefits

47,496

48,027

Deferred income taxes and other liabilities

36,706

37,290

Total long-term liabilities

366,819

16.5

376,469

17.5

Total liabilities

1,258,423

56.5

1,176,457

54.7

Komatsu Ltd. shareholders’ equity

Common stock

67,870

67,870

Capital surplus

141,214

140,523

Retained earnings:

Appropriated for legal reserve

37,187

34,494

Unappropriated

934,135

847,153

Accumulated other comprehensive income (loss)

(186,593

)

(131,059

)

Treasury stock

(66,048

)

(35,138

)

Total Komatsu Ltd. shareholders’ equity

927,765

41.6

923,843

43.0

Noncontrolling interests

41,957

1.9

48,837

2.3

Total equity

969,722

43.5

972,680

45.3

Total

2,228,145

100.0

2,149,137

100.0

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(2) Condensed Consolidated Statements of Income

Nine months ended December 31, 2011 and 2010

		September 30,			September 30,			September 30,			September 30,
	Millions of yen except per share amounts
	Nine months ended December 31, 2011						Nine months ended December 31, 2010
				Ratio (%)						Ratio (%)
Net sales	¥	1,448,509			100.0		¥	1,301,973			100.0
Cost of sales		1,048,195			72.4			946,407			72.7
Selling, general and administrative expenses		208,677			14.4			190,488			14.6
Other operating income (expenses), net		198			0.0			(2,331	)		(0.2	)

Operating income		191,835			13.2			162,747			12.5

Other income (expenses), net		(6,144	)					(3,844	)
Interest and dividend income		3,035			0.2			3,012			0.2
Interest expense		(5,721	)		(0.4	)		(4,651	)		(0.4	)
Other, net		(3,458	)		(0.2	)		(2,205	)		(0.2	)

Income before income taxes and equity in earnings of affiliated companies		185,691			12.8			158,903			12.2

Income taxes		51,218			3.5			55,650			4.3
Income before equity in earnings of affiliated companies		134,473			9.3			103,253			7.9
Equity in earnings of affiliated companies		1,401			0.1			2,399			0.2
Net income		135,874			9.4			105,652			8.1
Less net income attributable to noncontrolling interests		(6,498	)		(0.4	)		(5,030	)		(0.4	)

Net income attributable to Komatsu Ltd.	¥	129,376			8.9		¥	100,622			7.7

Net income attributable to Komatsu Ltd. per share (Yen)
Basic		133.86						103.97
Diluted		133.75						103.91

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Three months ended December 31, 2011 and 2010

		September 30,			September 30,			September 30,			September 30,
	Millions of yen except per share amounts
	Three months ended December 31, 2011						Three months ended December 31, 2010
				Ratio (%)						Ratio (%)
Net sales	¥	462,642			100.0		¥	442,210			100.0
Cost of sales		335,207			72.5			316,530			71.6
Selling, general and administrative expenses		68,538			14.8			65,738			14.9
Other operating income (expenses), net		(11	)		(0.0	)		(1,107	)		(0.3	)

Operating income		58,886			12.7			58,835			13.3

Other income (expenses), net		(3,438	)					(43	)
Interest and dividend income		950			0.2			683			0.2
Interest expense		(2,066	)		(0.4	)		(1,362	)		(0.3	)
Other, net		(2,322	)		(0.5	)		636			0.1

Income before income taxes and equity in earnings of affiliated companies		55,448			12.0			58,792			13.3

Income taxes		18,956			4.1			22,143			5.0
Income before equity in earnings of affiliated companies		36,492			7.9			36,649			8.3
Equity in earnings of affiliated companies		367			0.1			1,201			0.3
Net income		36,859			8.0			37,850			8.6
Less net income attributable to noncontrolling interests		(2,158	)		(0.5	)		(992	)		(0.2	)

Net income attributable to Komatsu Ltd.	¥	34,701			7.5		¥	36,858			8.3

Net income attributable to Komatsu Ltd. per share (Yen)
Basic		36.01						38.09
Diluted		35.98						38.06

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(3) Consolidated Statements of Equity

Nine months ended December 31, 2011

		September 30,		September 30,			September 30,		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Millions of yen
						Retained earnings					Accumulated						Total Komatsu
	Common stock		Capital surplus			Appropriated for legal reserve		Unappropriated			other comprehensive income (loss)			Treasury stock			Ltd. shareholders’ equity			Noncontrolling interests			Total
Balance at March 31, 2011	¥	67,870	¥	140,523		¥	34,494	¥	847,153		¥	(131,059	)	¥	(35,138	)	¥	923,843		¥	48,837		¥	972,680
Cash dividends									(39,701	)								(39,701	)		(5,987	)		(45,688	)
Transfer to retained earnings appropriated for legal reserve							2,693		(2,693	)								—						—
Other changes				(146	)													(146	)		(4,089	)		(4,235	)
Comprehensive income (loss)
Net income									129,376									129,376			6,498			135,874
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments												(47,894	)					(47,894	)		(3,144	)		(51,038	)
Net unrealized holding gains (losses) on securities available for sale												(7,348	)					(7,348	)		—			(7,348	)
Pension liability adjustments												(366	)					(366	)		—			(366	)
Net unrealized holding gains (losses) on derivative instruments												74						74			(158	)		(84	)

Comprehensive income (loss)																		73,842			3,196			77,038

Issuance and exercise of stock acquisition rights				704														704						704
Purchase of treasury stock															(31,112	)		(31,112	)					(31,112	)
Sales of treasury stock				133											202			335						335
Balance at December 31, 2011	¥	67,870	¥	141,214		¥	37,187	¥	934,135		¥	(186,593	)	¥	(66,048	)	¥	927,765		¥	41,957		¥	969,722

Nine months ended December 31, 2010

		September 30,		September 30,		September 30,		September 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	Millions of yen
					Retained earnings					Accumulated						Total Komatsu
	Common stock		Capital surplus		Appropriated for legal reserve		Unappropriated			other comprehensive income (loss)			Treasury stock			Ltd. shareholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2010	¥	67,870	¥	140,421	¥	31,983	¥	724,090		¥	(95,634	)	¥	(34,755	)	¥	833,975		¥	42,824		¥	876,799
Cash dividends								(25,178	)								(25,178	)		(975	)		(26,153	)
Transfer to retained earnings appropriated for legal reserve						1,260		(1,260	)								—						—
Other changes																	—			1,910			1,910
Comprehensive income (loss)
Net income								100,622									100,622			5,030			105,652
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments											(56,935	)					(56,935	)		(3,382	)		(60,317	)
Net unrealized holding gains (losses) on securities available for sale											274						274			—			274
Pension liability adjustments											418						418			—			418
Net unrealized holding gains (losses) on derivative instruments											723						723			79			802

Comprehensive income (loss)																	45,102			1,727			46,829

Issuance and exercise of stock acquisition rights				133													133						133
Purchase of treasury stock														(572	)		(572	)					(572	)
Sales of treasury stock				7										59			66						66

Balance at December 31, 2010	¥	67,870	¥	140,561	¥	33,243	¥	798,274		¥	(151,154	)	¥	(35,268	)	¥	853,526		¥	45,486		¥	899,012

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(4) Consolidated Statements of Cash Flows

		September 30,			September 30,
	Millions of yen
	Nine months ended December 31, 2011			Nine months ended December 31, 2010
Operating activities
Net income	¥	135,874		¥	105,652
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		68,074			66,128
Deferred income taxes		4,721			23,907
Net loss (gain) from sale of investment securities and subsidiaries		2,285			(72	)
Net loss (gain) on sale of property		(227	)		(1,946	)
Loss on disposal of fixed assets		1,331			948
Pension and retirement benefits, net		1,239			(4,142	)
Changes in assets and liabilities:
Decrease (increase) in trade receivables		20,036			(48,750	)
Decrease (increase) in inventories		(134,650	)		(94,511	)
Increase (decrease) in trade payables		(30,273	)		78,182
Increase (decrease) in income taxes payable		(21,773	)		(126	)
Other, net		14,243			7,659

Net cash provided by (used in) operating activities		60,880			132,929

Investing activities
Capital expenditures		(96,561	)		(74,383	)
Proceeds from sale of property		5,278			6,317
Proceeds from sale of available for sale investment securities		1,256			1,843
Purchases of available for sale investment securities		(1,446	)		(493	)
Acquisition of subsidiaries and equity investees, net of cash acquired		(7,836	)		758
Collection of loan receivables		1,908			1,556
Disbursement of loan receivables		(400	)		(918	)
Decrease (increase) in time deposits, net		(442	)		407

Net cash provided by (used in) investing activities		(98,243	)		(64,913	)

Financing activities
Proceeds from long-term debt		105,827			50,162
Repayments on long-term debt		(37,949	)		(50,392	)
Increase (decrease) in short-term debt, net		118,322			(10,339	)
Repayments of capital lease obligations		(42,863	)		(24,034	)
Sale (purchase) of treasury stock, net		(30,833	)		30
Dividends paid		(39,701	)		(25,178	)
Other, net		(10,725	)		121

Net cash provided by (used in) financing activities		62,078			(59,630	)

Effect of exchange rate change on cash and cash equivalents		(5,320	)		(6,462	)

Net increase (decrease) in cash and cash equivalents		19,395			1,924

Cash and cash equivalents, beginning of year		84,224			82,429

Cash and cash equivalents, end of period	¥	103,619		¥	84,353

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(5) Note to the Going Concern Assumption

None

(6) Business Segment Information

1) Operating Segments

Nine months ended December 31, 2011 and 2010

(For the Nine months ended December 31, 2011)

September 30,

Millions of yen

Construction,
Mining and
Utility Equipment

Industrial
Machinery and
Others

Subtotal

Corporate &
elimination

Total

Net sales:

Customers

1,265,104

183,405

1,448,509

—

1,448,509

Intersegment

3,956

6,038

9,994

(9,994

)

—

Total

1,269,060

189,443

1,458,503

(9,994

)

1,448,509

Segment profit

178,958

16,721

195,679

(4,042

)

191,637

(For the Nine months ended December 31, 2010)

		September 30,		September 30,		September 30,		September 30,			September 30,
	Millions of yen
	Construction, Mining and Utility Equipment		Industrial Machinery and Others		Subtotal		Corporate & elimination			Total
Net sales:
Customers		1,146,921		155,052		1,301,973		—			1,301,973
Intersegment		1,614		7,740		9,354		(9,354	)		—

Total		1,148,535		162,792		1,311,327		(9,354	)		1,301,973

Segment profit		156,379		13,403		169,782		(4,704	)		165,078

Three months ended December 31, 2011 and 2010

(For the three months ended December 31, 2011)

September 30,

Millions of yen

Construction,
Mining and
Utility Equipment

Industrial
Machinery and
Others

Subtotal

Corporate &
elimination

Total

Net sales:

Customers

411,430

51,212

462,642

—

462,642

Intersegment

1,222

1,834

3,056

(3,056

)

—

Total

412,652

53,046

465,698

(3,056

)

462,642

Segment profit

58,804

1,594

60,398

(1,501

)

58,897

(For the three months ended December 31, 2010)

		September 30,		September 30,		September 30,		September 30,			September 30,
	Millions of yen
	Construction, Mining and Utility Equipment		Industrial Machinery and Others		Subtotal		Corporate & elimination			Total
Net sales:
Customers		383,276		58,934		442,210		—			442,210
Intersegment		623		2,309		2,932		(2,932	)		—

Total		383,899		61,243		445,142		(2,932	)		442,210

Segment profit		54,077		7,270		61,347		(1,405	)		59,942

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Notes:

1) Business categories and principal products & services included in each operating segment are as follows:

Construction, Mining and Utility Equipment

Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines & components, casting products and logistics

Industrial Machinery and Others

Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment and others

Transfers between segments are made at estimated arm’s-length prices.

2) Geographic Information

Net sales to customers recognized by sales destination were as follows:

Nine months ended December 31, 2011 and 2010

September 30,

Millions of yen

Japan

Americas

Europe
& CIS

China

Asia* &
Oceania

Middle East
& Africa

Total

FY2011

293,345

333,982

150,370

208,289

369,417

93,106

1,448,509

FY2010

256,680

289,839

114,065

282,145

285,059

74,185

1,301,973

Three months ended December 31, 2011 and 2010

September 30,

Millions of yen

Japan

Americas

Europe
& CIS

China

Asia* &
Oceania

Middle East
& Africa

Total

FY2011

101,912

109,674

49,800

48,414

125,045

27,797

462,642

FY2010

93,561

93,252

41,927

96,018

92,873

24,579

442,210

*	Excluding Japan and China

(7) Note in Case of Notable Change(s) in the Amount of Shareholders’ Equity

In November to December 2011, the Company repurchased 15,613,800 shares of its own common stock in the open market at total cost of JPY29,997 million in order to improve capital efficiency and further promote returns to shareholders based on the resolutions made by the Board of Directors in its meeting held on October 27, 2011. For any change(s) of Shareholders’ Equity, refer to (3) Consolidated Statements of Equity on page 15.

(end)

Date: February 2, 2012

/S/ Mikio Fujitsuka

Mikio Fujitsuka

Director and Senior Executive Officer