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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 January 2006

 

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 January 31, 2006

 

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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: February 1, 2006		By:		/S/ KENJI KINOSHITA
				Kenji Kinoshita
				Senior Executive Officer

 

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Consolidated Business Results

for Nine Months of the Fiscal Year Ending March 31, 2006 (U.S. 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:                  29 companies

Removed:             10 companies

 

Affiliated companies accounted for by the equity method

 

Added:                  2 companies

Removed:             4 companies

 

2. Results for Nine Months of the Fiscal Year Ending March 31, 2006

 

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

 

Millions of yen except per share amounts

 

		Nine months ended December 31, 2005			Nine months ended December 31, 2004			Changes Increase					FY ended March 31, 2005
Net sales			1,224,062			1,034,763		189,299		18.3	%			1,434,788
Operating profit			121,467			70,870		50,597		71.4	%			101,923
Income before income taxes, minority interests and equity in earnings			125,253			72,458		52,795		72.9	%			98,703
Net income			83,722			41,718		42,004		100.7	%			59,010
Net income per share (Yen)
Basic		¥	84.36		¥	42.06		42.30					¥	59.51
Diluted		¥	84.24		¥	42.04		42.20					¥	59.47

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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 nine months a year ago.
		2)      Operating profit stated hereafter is the sum of segment profit (net sales less cost of sales and selling, general and administrative expenses). It conforms to Japanese accounting principles, and does not represent consolidated operating profit under U.S.GAAP.

 

(2) Consolidated Financial Position

 

		As of December 31, 2005		As of March 31, 2005
Total assets (Millions of yen)		1,623,397		1,449,068
Shareholders’ equity (Millions of yen)		586,892		477,144
Shareholders’ equity ratio (%)		36.2		32.9
Shareholders’ equity per share (Yen)		590.67		481.27

 

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3. Management Performance (Consolidated)

 

For the 9-month period of the fiscal year, ending March 31, 2006, Komatsu posted consolidated net sales of ¥1,224.0 billion, up 18.3% over the previous corresponding period. Operating profit for the period climbed 71.4%, to ¥121.4 billion, while net income reached ¥83.7 billion, registering a double increase of 100.7%. These figures represent expanded sales and profits for four consecutive 9-month periods.

 

In addition to impressive improvement in performance of our mainstay business of construction and mining equipment as well as business of industrial machinery, vehicles and others, our electronics business also improved its results from the 9-month period last year, driven by good performance of the silicon wafer business. As a result, all our business segments achieved growth in both sales and profits for the 9-month period under review.

 

With regard to consolidated business results for the fiscal year, ending March 31, 2006, we are pleased to report that our projections announced on November 1, 2005 remain sound in effect today.

 

Construction and Mining Equipment

 

Consolidated net sales of construction and mining equipment for the 9-month period under review made a sizable gain of 20.9% over the previous corresponding period, to ¥931.2 billion, against the backdrop of thriving demand worldwide. While boosting sales, we continued our efforts to increase sales prices and reduce production costs. As a result, segment profit reached ¥98.1 billion, registering a solid increase of 78.1% over the previous 9-month period last year.

 

We accelerated sales in the major markets of North America and Europe, Central and South America with strong demand for mining equipment, and the Middle East where infrastructure developments were gaining momentum. We also expanded sales in China where demand was recovering steadily. In addition to overall growth in sales overseas, those in Japan also improved from the previous 9-month period.

 

[Sales of Construction and Mining Equipment by Region (Geographic Origin)]		Millions of yen

 

		Nine months ended December 31, 2005 (A) 1USD=¥113 1EUR=¥137		Nine months ended December 31, 2004 (B) 1USD=¥108 1EUR= ¥135		Changes Increase (A)-(B)
Japan		200,625		199,495		1,130		0.6	%
The Americas		302,700		222,566		80,134		36.0	%
Europe & CIS		164,628		133,657		30,971		23.2	%
Asia & Oceania		144,834		125,267		19,567		15.6	%
China		42,185		29,109		13,076		44.9	%
The Middle East & Africa		76,231		59,990		16,241		27.1	%
Total		931,203		770,084		161,119		20.9	%

 

Industrial Machinery, Vehicles and Others

 

Consolidated net sales of industrial machinery, vehicles and other operations increased 14.1% over the previous 9-month period, to ¥210.7 billion. Segment profit reached ¥16.2 billion, recording a substantial gain of 54.5%.

 

Against the backdrop of thriving capital outlays of automobile manufacturing industries, sales of large presses accelerated, centering on the AC Servo Press series. Komatsu Industries Corporation and Komatsu Machinery Corporation also stepped up sales of industrial machinery.

 

Komatsu Forklift Co., Ltd., Komatsu Logistics Corp. and other Komatsu Group companies continued to improve their performance for the 9-month period under review.

 

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Electronics

 

Consolidated net sales from the electronics business increased 2.7% over the previous 9-month period, to ¥82.1 billion. Segment profit improved 6.1%, to ¥9.1 billion.

 

At the end of July last year, we sold Advanced Silicon Materials LLC (ASiMI), a U.S. sales and manufacturing subsidiary of polycrystalline silicon, which resulted in a factor of lowering sales and profits of our electronics business. However, increased sales and profits of Komatsu Electronic Metals Co., Ltd. offset the adverse effects and improved consolidated performance of our electronics business.

 

4. Financial Conditions (Consolidated)

 

Total assets amounted to ¥1,623.3 billion at the end of the 9-month period under review, up ¥174.3 billion from the previous fiscal year-end. This increase reflects growth in trade notes and accounts receivable as well as inventories resulting particularly from accelerated sales of construction and mining equipment. Nevertheless, total asset turnover has improved and repayment of borrowings advanced. Interest-bearing debt totaled ¥395.8 billion at the end of the 9-month period under review, a decline of ¥36.4 billion from the previous fiscal year-end. With an increase in shareholders’ equity mainly resulting from expanded profits, net debt-to-equity ratio* further improved to 0.54 at the end of the 9-month period under review, compared to 0.70 at the previous fiscal-year end.

 

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*	Net DER = (Interest-bearing debt – Cash and cash equivalents – Time deposits)/shareholders’ equity

 

<Reference>

 

Projection for the Full Fiscal Year ending March 31, 2006 (Consolidated)

 

(From April 1, 2005 to March 31, 2006)

Millions of yen

 

		Net sales		Operating profit		Income before income taxes		Net income
The entire fiscal year		1,650,000		160,000		153,000		101,000

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*	Announced on November 1, 2005

 

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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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Condensed Consolidated Balance Sheets

Millions of yen

 

		As of December 31, 2005				As of March 31, 2005				Changes Increase (Decrease)
		(A)				(B)				(A)-(B)
Assets
Current assets:
Cash and cash equivalents		¥	81,495			¥	97,510			¥	(16,015	)
Time deposits			100				52				48
Trade notes and accounts receivable			389,333				316,828				72,505
Inventories			363,937				307,002				56,935
Other current assets			108,968				94,105				14,863
Total current assets			943,833				815,497				128,336
Long-term trade receivables			68,317				80,856				(12,539	)
Investments			110,843				83,447				27,396
Property, plant, and equipment - Less accumulated depreciation			386,438				366,660				19,778
Other assets			113,966				102,608				11,358
Total			1,623,397				1,449,068				174,329
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term debt (including current maturities of long-term debt)			191,405				214,577				(23,172	)
Trade notes and accounts payable			319,308				266,112				53,196
Income taxes payable			28,192				12,234				15,958
Other current liabilities			161,219				149,576				11,643
Total current liabilities			700,124				642,499				57,625
Long-term liabilities			292,633				290,479				2,154
Minority interests			43,748				38,946				4,802
Shareholders’ equity:
Common stock			67,870				67,870				—
Capital surplus			136,133				135,792				341
Retained earnings			369,370				299,537				69,833
Accumulated other comprehensive income (loss) *			17,495				(21,485	)			38,980
Treasury stock			(3,976	)			(4,570	)			594
Total shareholders’ equity – net			586,892				477,144				109,748
Total		¥	1,623,397			¥	1,449,068			¥	174,329

 

		As of December 31, 2005				As of March 31, 2005				Changes Increase (Decrease)
* Accumulated other comprehensive income (loss):
Foreign currency translation adjustments		¥	(4,056	)		¥	(22,161	)		¥	18,105
Net unrealized holding gains on securities available for sale			32,349				18,605				13,744
Pension liability adjustments			(10,435	)			(17,340	)			6,905
Net unrealized holding gains (losses) on derivative instruments			(363	)			(589	)			226
Short & long-term debt		¥	395,834			¥	432,291			¥	(36,457	)

 

Note:		The accompanying consolidated balance sheet for the current fiscal year reflects the reclassification of the portion of installment and lease receivables due after one year (less unearned interest), or the long-term portion, separately from trade notes and accounts receivable of current assets. The corresponding figures at the last fiscal year-end were also reclassified accordingly.

 

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Condensed Consolidated Statements of Income

(For nine months ended December 31, 2005 and 2004)

Millions of yen

 

		2005							2004							Changes Increase (Decrease)
		(A)				%			(B)				%			(A)-(B)				%
Revenues and other
Net sales		¥	1,224,062			100.0			¥	1,034,763			100.0			¥	189,299			18.3
Interest and other income			25,182			2.1				16,981			1.6				8,201
			1,249,244			—				1,051,744			—				197,500			18.8
Costs and expenses
Cost of sales			898,588			73.4				770,680			74.5				127,908
Selling, general and administrative expenses			204,007			16.7				193,213			18.7				10,794
Interest expense			9,431			0.8				7,789			0.7				1,642
Other			11,965			1.0				7,604			0.7				4,361
			1,123,991			—				979,286			—				144,705			14.8
Income before income taxes, minority interests, and equity in earnings			125,253			10.2				72,458			7.0				52,795			72.9
Income taxes			34,846			2.8				27,921			2.7				6,925
Minority interests in (income) of consolidated subsidiaries			(7,819	)		(0.6	)			(4,104	)		(0.4	)			(3,715	)
Equity in earnings of affiliated companies			1,134			0.1				1,285			0.1				(151	)
Net income		¥	83,722			6.8			¥	41,718			4.0			¥	42,004			100.7

 

 

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Business Segment Information

(For nine months ended December 31, 2005 and 2004)

 

Millions of yen

 

		2005 (A) 1USD=¥113 1EUR=¥137								2004 (B) 1USD=¥108 1EUR=¥135								Changes Increase (Decrease) (A)-(B)
		Sales			Segment Profit			Segment Profit Ratio (%)		Sales			Segment Profit			Segment Profit Ratio (%)		Sales			Segment Profit
Construction and Mining Equipment		946,989			98,124			10.4		781,887			55,104			7.0		165,102			43,020
Industrial Machinery, Vehicles and Others		274,516			16,289			5.9		230,731			10,542			4.6		43,785			5,747
Electronics		82,125			9,146			11.1		79,976			8,622			10.8		2,149			524
Subtotal		1,303,630			123,559			9.5		1,092,594			74,268			6.8		211,036			49,291
Corporate & Elimination		(79,568	)		(2,092	)		—		(57,831	)		(3,398	)		—		(21,737	)		1,306
Total		1,224,062			121,467			9.9		1,034,763			70,870			6.8		189,299			50,597

 

 

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Consolidated Sales by Operation

(For nine months ended December 31, 2005 and 2004)

 

Millions of yen

 

				2005 (A)				2004 (B)				Changes Increase (Decrease) (A)-(B)
				Sales		Ratio (%)		Sales		Ratio (%)		Sales			(%)
Construction and Mining Equipment		Japan		200,625		16.4		199,495		19.3		1,130			0.6
		Overseas		730,578		59.7		570,589		55.1		159,989			28.0
				931,203		76.1		770,084		74.4		161,119			20.9
Industrial Machinery, Vehicles and Others		Japan		137,727		11.2		131,075		12.7		6,652			5.1
		Overseas		73,013		6.0		53,632		5.2		19,381			36.1
				210,740		17.2		184,707		17.9		26,033			14.1
Electronics		Japan		40,267		3.3		41,560		4.0		(1,293	)		(3.1	)
		Overseas		41,852		3.4		38,412		3.7		3,440			9.0
				82,119		6.7		79,972		7.7		2,147			2.7
Total		Japan		378,619		30.9		372,130		36.0		6,489			1.7
		Overseas		845,443		69.1		662,633		64.0		182,810			27.6
				1,224,062		100.0		1,034,763		100.0		189,299			18.3

 

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Reference:

 

Consolidated Business Results for Three Months from October through December 2005

 

(1) Business Segment Information		Millions of yen

 

		Three months ended December 31, 2005 (A) 1USD=¥118 1EUR=¥140								Three months ended December 31, 2004 (B) 1USD=¥105 1EUR=¥138								Changes Increase (Decrease) (A)-(B)
		Sales			Segment Profit			Segment Profit Ratio (%)		Sales			Segment Profit			Segment Profit Ratio (%)		Sales			Segment Profit
Construction and Mining Equipment		323,236			33,392			10.3		267,504			19,213			7.2		55,732			14,179
Industrial Machinery, Vehicles and Others		96,396			5,552			5.8		77,926			3,461			4.4		18,470			2,091
Electronics		28,061			3,577			12.7		26,682			3,014			11.3		1,379			563
Subtotal		447,693			42,521			9.5		372,112			25,688			6.9		75,581			16,833
Corporate & Elimination		(33,340	)		(753	)		—		(21,325	)		(987	)		—		(12,015	)		234
Total		414,353			41,768			10.1		350,787			24,701			7.0		63,566			17,067

 

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(2) Consolidated Sales by Operation		Millions of yen

 

				Three months ended December 31, 2005 (A)				Three months ended December 31, 2004 (B)				Changes Increase (Decrease) (A)-(B)
				Sales		Ratio (%)		Sales		Ratio (%)		Sales			(%)
Construction and Mining Equipment		Japan		71,254		17.2		71,188		20.3		66			0.1
		Overseas		244,856		59.1		191,445		54.6		53,411			27.9
				316,110		76.3		262,633		74.9		53,477			20.4
Industrial Machinery, Vehicles and Others		Japan		44,399		10.7		45,083		12.8		(684	)		(1.5	)
		Overseas		25,784		6.2		16,390		4.7		9,394			57.3
				70,183		16.9		61,473		17.5		8,710			14.2
Electronics		Japan		13,191		3.2		14,358		4.1		(1,167	)		(8.1	)
		Overseas		14,869		3.6		12,323		3.5		2,546			20.7
				28,060		6.8		26,681		7.6		1,379			5.2
Total		Japan		128,844		31.1		130,629		37.2		(1,785	)		(1.4	)
		Overseas		285,509		68.9		220,158		62.8		65,351			29.7
				414,353		100.0		350,787		100.0		63,566			18.1

 

(3) Sales of Construction and Mining Equipment by Region (Geographic Origin)		Millions of yen

 

		Three months ended December 31, 2005 (A)		Three months ended December 31, 2004 (B)		Changes Increase (Decrease) (A)-(B)
Japan		71,254		71,188		66			0.1	%
The Americas		106,152		75,602		30,550			40.4	%
Europe & CIS		58,880		46,513		12,367			26.6	%
Asia & Oceania		41,188		42,723		(1,535	)		(3.6	%)
China		15,558		6,552		9,006			137.5	%
The Middle East & Africa		23,078		20,055		3,023			15.1	%
Total		316,110		262,633		53,477			20.4	%

 

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