Komatsu announces 18% increase in sales and 73% increase in profit
(15/03/2007)

Komatsu has announced its consolidated business results for the fiscal year ended March 31, 2006.

Consolidated business results of the Komatsu Group for the fiscal year ended March 31, 2006 continued to renew the record-high sales and profits, marking the fourth consecutive year of improvements in both sales and profits. The Komatsu Group also improved operating profit ratio to 10.4% for the year, achieving the goal of 10% a year ahead of schedule.

Consolidated sales of construction and mining equipment expanded 21.7% over the previous year, to ¥1,291.2 billion. Overseas sales totaled ¥1,016.4 billion for the year, topping the 1 trillion mark for the first time, driven by expanded sales in all regions of the world, especially in the world's largest market of the United States, China and other emerging markets where demand continued to recover.

Consolidated sales and profits also increased in the industrial machinery, vehicles and others as well as electronics segments.
The Komatsu Group anticipates that both sales and profits will continue to expand for next fiscal year ending March 31, 2007.

Komatsu Ltd. plans to set the annual dividends per share at ¥18 with an increase of ¥2 from the earlier announcement of ¥16 made in November 2005. Concerning annual dividends per share for next fiscal year ending March 31, 2007, the Company looks for ¥24 with an increase of ¥6, which will represent the fourth consecutive annual increase.