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FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

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Report of Foreign Private Issuer

 

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

the Securities Exchange Act of 1934

 

For the month of July 2004

 

COMMISSION FILE NUMBER: 1-7239

 

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KOMATSU LTD.

Translation of registrant’s name into English

 

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

Address of principal executive offices

 

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Indicate by check mark whether the registrant files or will file annual reports under cover 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):

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes  ¨    No  x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            

 

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INFORMATION TO BE INCLUDED IN REPORT

 

1.	A company announcement made on July 29, 2004

 

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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)
Date: August 2, 2004		By:		/s/ Kenji Kinoshita
				Kenji Kinoshita
				Senior Executive Officer

 

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Consolidated Business Results for the First Quarter

of the Fiscal Year Ending March 31, 2005 (US GAAP)

 

1. Matters Related to the Production of the Outline of Business

 

1) Simplified accounting procedures: Adopted in part to calculate tax expenses.

 

2) Changes in accounting procedures since the last consolidated fiscal year: None.

 

3) Changes in group of entities:

 

Consolidated subsidiaries

 

Added: 4 companies             Removed: 3 companies

 

2. Results for the First Quarter of the Fiscal Year Ending March 31, 2005

 

(1) Consolidated Financial Results		(Amounts are rounded to the nearest million yen)		Millions of yen

 

		First quarter ended June 30, 2004			First quarter ended June 30, 2003			Changes					FY ended March 31, 2004
Net sales			318,122			265,604		52,518		19.8	%			1,196,418
Operating profit			18,149			9,232		8,917		96.6	%			65,926
Income before income taxes, minority interests and equity in earnings			19,443			7,750		11,693		150.9	%			27,036
Net income			10,378			3,740		6,638		177.5	%			26,963
Net income per share (Yen)
Basic		¥	10.46		¥	3.77		6.69					¥	27.17
Diluted		¥	10.45		¥	3.77		6.68					¥	27.16

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Notes:

1) Percentages shown in net sales, operating profit, income before income taxes and net income represent the rates of change compared with the corresponding first quarter a year ago.

2) Operating profit stated above is the sum of segment profit. The amount is consistent with custom of the Japanese accounting principle by subtracting cost of sales and selling, general and administrative expenses from net sales. This amount does not represent consolidated operating profit under U.S. GAAP.

 

(2) Consolidated Financial Position

 

		As of June 30, 2004		As of March 31, 2004
Total assets (Millions of yen)		1,338,449		1,348,645
Shareholders’ equity (Millions of yen)		437,386		425,507
Shareholders’ equity ratio (%)		32.7		31.6
Shareholders’ equity per share (Yen)		440.67		428.73

 

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3. Projections for the Fiscal Year ending March 31, 2005

 

Millions of yen

 

		Net sales		Income before income taxes		Net income
For the first half of fiscal year		645,000		34,000		17,500
The full fiscal year		1,300,000		72,000		37,000

Projected

net income per share (Basic) ¥ 37.28

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*	Announced on May 7, 2004

*	Concerning its business results for the fiscal year ending March 31, 2005, Komatsu is pleased to report good progress towards company projections that were announced on May 7, 2004, therefore Komatsu doesn’t change its projection at this stage.

 

4. Management Performance (Consolidated)

 

Consolidated net sales for the first quarter of the fiscal year ending March 31, 2005, increased 19.8% over the previous corresponding period, to ¥318.1 billion. Net income for the first quarter expanded 177.5%, to ¥10.3 billion. These results represent three consecutive first-quarter improvements in both sales and profits.

 

In addition to significant growth in sales recorded by the construction and mining equipment business, Komatsu’s mainstay operation, sales of industrial machinery, vehicles and other operations as well as the electronics business also improved. Operating profit* surged 96.6% over the previous corresponding period, to ¥18.1 billion, demonstrating continued efforts by Komatsu to improve earnings, and recording growth in both sales and profits for all business segments.

 

Concerning consolidated business results for the interim period and the full fiscal year ending March 31, 2005, we are pleased to report that our projections announced on May 7, 2004 remain sound and effective today.

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*	In conformity with the Japanese accounting principles, operating profit is obtained by subtracting cost of sales and selling, general and administrative expenses, from net sales.

 

Construction and Mining Equipment

 

Consolidated net sales of construction and mining equipment made a big gain of 22.9% over the corresponding period a year ago, to ¥241.9 billion, against the backdrop of expanded demand worldwide. Operating profit for this business segment climbed 71.2% over the previous corresponding period, to ¥17.0 billion.

 

In particular, Komatsu accelerated sales in North America, Asia and Oceania with strong demand for mining equipment, and in the Middle East with active infrastructure developments. Komatsu also expanded sales of new equipment centering on hydraulic excavators in Japan. In China, sales declined from the previous corresponding period, as demand dropped due to the Chinese government’s credit squeeze measure and other adverse factors.

 

[Sales of Construction & Mining Equipment by Region (Sales Destination)]

 

Millions of yen

 

		First quarter ended June 30, 2004 1USD=110JPY 1EUR=132JPY		First quarter ended June 30, 2003 1USD=119JPY 1EUR=137JPY		Changes Increase (Decrease)
		(A)		(B)		(A)-(B)			%
Japan		58,270		52,831		5,439			10.3
Americas		70,779		51,072		19,707			38.6
Europe		42,728		36,511		6,217			17.0
Asia* & Oceania		36,434		21,155		15,279			72.2
China		14,938		22,043		(7,105	)		(32.2)
Middle East & Africa		18,805		13,299		5,506			41.4
Total		241,954		196,911		45,043			22.9

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*	Japan and China are excluded.

 

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Industrial Machinery, Vehicles and Others

 

Consolidated net sales of industrial machinery, vehicles and other operations increased 7.8% over the corresponding period last year, to ¥50.5 billion for the first quarter under review. Operating profit for this business segment expanded 47.1%, to ¥0.7 billion.

 

Komatsu Group companies, including Komatsu Forklift Co., Ltd., the agricultural and forestry equipment business of Komatsu Zenoah Co., Komatsu Machinery Corporation and Komatsu Logistics Corp., all improved their sales and profits.

 

Electronics

 

Consolidated net sales from the electronics business grew 17.5% over the previous corresponding period, to ¥25.5 billion for the first quarter under review. Operating profit for this business segment totaled ¥1.8 billion.

 

Komatsu Electronic Metals Co., Ltd. substantially expanded sales and profits in Taiwan, China and Southeast Asia where demand for silicon wafers thrived as well as in Japan with strong demand driven by good sales of digital consumer electronics. Advanced Silicon Materials LLC recorded strong sales of polycrystalline silicon and monosilane gas.

 

5. Financial Conditions (Consolidated)

 

Total assets amounted to ¥1,338.4 billion at the end of the first quarter under review, representing a decline of ¥10.1 billion. While inventories grew in line with expanded demand, decreased trade notes and accounts receivable together with the appropriation of cash and cash equivalents to repayments of interest-bearing debt reduced total assets.

 

Interest-bearing debt totaled ¥433.4 billion, a decrease of ¥26.5 billion from the last fiscal year-end. As a result, net debt-to-equity ratio [(interest-bearing debt – cash and cash equivalents – time deposits)/shareholders’ equity] improved to 0.88 at the end of the first quarter under review from 0.91 at the last fiscal year-end.

 

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Condensed Consolidated Balance Sheets

 

Millions of yen

 

		As of June 30, 2004				As of March 31, 2004				Changes Increase (Decrease)
		(A)				(B)				(A)-(B)
Assets
Current assets:
Cash and cash equivalents		¥	46,963			¥	71,406			¥	(24,443	)
Time deposits			22				64				(42	)
Trade notes and accounts receivable			342,475				354,184				(11,709	)
Inventories			278,933				255,866				23,067
Other current assets			100,330				98,861				1,469
Total current assets			768,723				780,381				(11,658	)
Investments			80,705				78,872				1,833
Property, plant and equipment - Less accumulated depreciation			366,125				367,361				(1,236	)
Other assets			122,896				122,031				865
Total			1,338,449				1,348,645				(10,196	)
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term debt (including current maturities of long-term debt)			142,599				152,925				(10,326	)
Trade notes and accounts payable			226,239				218,911				7,328
Income taxes payable			7,038				12,957				(5,919	)
Other current liabilities			137,697				135,039				2,658
Total current liabilities			513,573				519,832				(6,259	)
Long-term liabilities			348,719				365,660				(16,941	)
Minority interests			38,771				37,646				1,125
Shareholders’ equity:
Common stock			67,870				67,870				—
Capital surplus			135,675				135,675				—
Retained earnings			255,862				249,454				6,408
Accumulated other comprehensive income (loss)			(18,352	)			(23,794	)			5,442
Treasury stock			(3,669	)			(3,698	)			29
Total shareholders’ equity - net			437,386				425,507				11,879
Total		¥	1,338,449			¥	1,348,645			¥	(10,196	)
Short & long-term debt			433,484				460,068				(26,584	)

 

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Condensed Consolidated Statements of Income

(For the three months ended June 30, 2004 and 2003)

 

Millions of yen

 

		2004							2003							Changes Increase (Decrease)
		(A)				%			(B)				%			(A)-(B)				%
Revenues
Net sales		¥	318,122			100.0			¥	265,604			100.0			¥	52,518			19.8
Interest and other income			5,170			1.6				4,095			1.5				1,075
Total			323,292			—				269,699			—				53,593			19.9
Costs and expenses
Cost of sales			236,149			74.2				196,714			74.1				39,435
Selling, general and administrative expenses			63,824			20.1				59,658			22.5				4,166
Interest expense			2,646			0.8				3,764			1.4				(1,118	)
Other expense			1,230			0.4				1,813			0.7				(583	)
Total			303,849			—				261,949			—				41,900			16.0
Income before income taxes, minority interests and equity in earnings			19,443			6.1				7,750			2.9				11,693			150.9
Income taxes			7,660			2.4				2,783			1.0				4,877
Minority interests in (income) of consolidated subsidiaries			(1,507	)		(0.5	)			(1,037	)		(0.4	)			(470	)
Equity in earnings (losses) of affiliated companies			102			0.0				(190	)		(0.1	)			292
Net income			10,378			3.3				3,740			1.4				6,638			177.5

 

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Business Segment Information

(For the three months ended June 30, 2004, and 2003)

 

Millions of yen

 

		First quarter ended June 30, 2004 1USD=110JPY 1EUR=132JPY								First quarter ended June 30, 2003 1USD=119JPY 1EUR=137JPY								Changes Increase (Decrease)
		Sales			Segment Profit			Margin %		Sales			Segment Profit			Margin %		Sales			Segment Profit
Construction & Mining Equipment		244,936			17,016			6.9		198,985			9,941			5.0		45,951			7,075
Industrial Machinery, Vehicles and Others		64,607			778			1.2		55,622			529			1.0		8,985			249
Electronics		25,590			1,893			7.4		21,824			137			0.6		3,766			1,756
Subtotal		335,133			19,687			5.9		276,431			10,607			3.8		58,702			9,080
Corporate & Elimination		(17,011	)		(1,538	)		—		(10,827	)		(1,375	)		—		(6,184	)		(163	)
Total		318,122			18,149			5.7		265,604			9,232			3.5		52,518			8,917

 

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Consolidated Sales by Operation

(For the three months ended June 30, 2004, and 2003)

 

Millions of yen

 

		First quarter ended June 30, 2004				First quarter ended June 30, 2003				Changes
		Sales		Ratio (%)		Sales		Ratio (%)		Sales		(%)
Construction & Mining Equipment
Japan		58,270		18.3		52,831		19.9		5,439		10.3
Overseas		183,684		57.8		144,080		54.2		39,604		27.5
		241,954		76.1		196,911		74.1		45,043		22.9
Industrial Machinery, Vehicles and Others
Japan		35,478		11.2		34,604		13.0		874		2.5
Overseas		15,100		4.7		12,311		4.7		2,789		22.7
		50,578		15.9		46,915		17.7		3,663		7.8
Electronics
Japan		13,070		4.1		11,054		4.2		2,016		18.2
Overseas		12,520		3.9		10,724		4.0		1,796		16.7
		25,590		8.0		21,778		8.2		3,812		17.5
Total
Japan		106,818		33.6		98,489		37.1		8,329		8.5
Overseas		211,304		66.4		167,115		62.9		44,189		26.4
		318,122		100.0		265,604		100.0		52,518		19.8

 

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