UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

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 þ Form 40-F o

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): o

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): o

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

Yes o No þ

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

 

 

INFORMATION TO BE INCLUDED IN REPORT

1.

A company announcement made on July 28, 2010.

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.
Corporate Communications Dept.
Tel: +81-(0)3-5561-2616
Date: July 28, 2010
URL: http://www.komatsu.com/

Consolidated Business Results for the First Quarter of the Fiscal Year Ending
March 31, 2011 (U.S. GAAP)

1. Results for the First Quarter of the Fiscal Year Ending March 31, 2011

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

Millions of yen except per share amounts

		First quarter				First quarter
		ended June 30,				ended June 30,
		2010				2009				Changes
		[A]				[B]				[A-B]			[(A-B)/B]
Net sales			447,140				320,428				126,712			39.5	%
Operating income			54,075				8,273				45,802			553.6	%
Income before income taxes and equity in earnings of affiliated companies			50,104				8,728				41,376			474.1	%
Net income attributable to Komatsu Ltd.			30,697				4,763				25,934			544.5	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic		¥	31.72			¥	4.92			¥	26.80
Diluted		¥	31.70			¥	4.92			¥	26.78

(2) Consolidated Financial Position

Millions of yen except per share amounts

		As of June 30, 2010				As of March 31, 2010
Total assets			1,903,163				1,959,055
Total equity			860,767				876,799
Komatsu Ltd. shareholders’ equity			818,506				833,975
Komatsu Ltd. shareholders’ equity ratio			43.0	%			42.6	%
Komatsu Ltd. shareholders’ equity per share (Yen)		¥	845.79			¥	861.51

2. Dividends

(For the fiscal years ended March 31, 2010 and ending March 31, 2011)

		2010				2011 Projections
Cash dividends per share (Yen)
First quarter period
Interim (Second quarter period)			8.00				14.00
Third quarter period
Year-end			8.00				14.00
Total			16.00				28.00

Note: Changes in the projected cash dividend as of July 28, 2010: None

3. Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

Millions of yen except per share amounts

		The first half of the year								The full fiscal year
						Changes								Changes
Net sales			870,000				34.7	%			1,715,000				19.8	%
Operating income			90,000				354.9	%			179,000				167.0	%
Income before income taxes and equity in earnings of affiliated companies			86,000				366.1	%			171,000				163.2	%
Net income attributable to Komatsu Ltd.			52,000				534.3	%			105,000				212.9	%
Net income attributable to Komatsu Ltd. per share (basic) (Yen)		¥	53.72							¥	108.47

Note: Percentages shown above represent the rates of change compared with the corresponding periods a year ago.

4. Others

(1)		Changes in important subsidiaries during the first quarter period under review: None
(2)		Use of simplified accounting procedures and adaptation 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

	1)		Changes resulting from revisions in accounting standards, etc.: None
	2)		Change in other matters except for 1) above: None

(4)

Number of common shares outstanding

	1)		The numbers of common shares issued (including treasury stock) were as follows: As of June 30, 2010:    998,744,060 shares As of March 31, 2010: 998,744,060 shares
	2)		The numbers of shares of treasury were as follows: As of June 30, 2010:    30,997,503 shares As of March 31, 2010: 30,704,084 shares
	3)		The weighted average numbers of common shares outstanding were as follows: First quarter period ended June 30, 2010: 967,834,078 shares First quarter period ended June 30, 2009: 967,910,177 shares

Appendix

Management Performance and Financial Conditions
(1) Outline of Operations and Business Results			P.4
(2) Financial Conditions			P.7
(3) Projections for the Fiscal Year Ending March 31, 2011			P.7
Financial Statements
(1) Condensed Consolidated Balance Sheets			P.8
(2) Condensed Consolidated Statements of Income			P.10
(3) Consolidated Statements of Equity			P.11
(4) Consolidated Statements of Cash Flows			P.12
(5) Note to the Going Concern Assumption			P.13
(6) Business Segment Information			P.13
(7) Note in Case of a Notable Changes in the Amount of Shareholders’ Equity			P.13

Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. and its consolidated subsidiaries (hereinafter “Komatsu”) embarked on the new three-year management plan, “Global Teamwork for Tomorrow” in April this year. Under this new mid-range management plan, Komatsu began concerting efforts on activities of importance, including 1) promotion of ICT applications to products and parts, 2) development of products for improved environmental friendliness and safety, 3) expansion of sales and service operations in Strategic Markets which include China, Asia, Oceania, Latin America and Africa, and 4) promotion of continuous Kaizen (improvement) by strengthening workplace capability.

During the first quarter period (three months from April 1 to June 30, 2010) of the fiscal year ending March 31, 2011, the first year of the ongoing mid-range management plan, demand for construction and mining equipment increased in all regions of the world from the corresponding period a year ago. Demand for industrial machinery also began to show signs of recovery. Against this backdrop, consolidated net sales totaled JPY447.1 billion (USD5,081 million, at USD1=JPY88), up 39.5% from the previous first quarter. While the Japanese currency appreciated sharply against the U.S. dollar and euro from the previous first quarter, Komatsu made sizable gains in first-quarter profits by enhancing productivity in addition to expanding sales. Specifically, operating income reached JPY54.0 billion (USD614 million), up 553.6%, and operating income ratio advanced to 12.1%, an improvement of 9.5 percentage points. Income before income taxes and equity in earnings of affiliated companies increased by 474.1% to JPY50.1 billion (USD569 million). Net income attributable to Komatsu Ltd. totaled JPY30.6 billion (USD349 million), up 544.5%.

Millions of yen

		First quarter				First quarter
		ended June 30,				ended June 30,
		2010				2009
		1USD=JPY91				1USD=JPY97
		1EUR=JPY115				1EUR=JPY133
		1RMB=JPY13.4				1RMB=JPY14.2				Changes
		[A]				[B]				[(A-B)/B]
Net sales			447,140				320,428				39.5	%
Operating income			54,075				8,273				553.6	%
Income before income taxes and equity in earnings of affiliated companies			50,104				8,728				474.1	%
Net income attributable to Komatsu Ltd.			30,697				4,763				544.5	%

Business results by operation are described below.

Construction, Mining and Utility Equipment

While Komatsu continued to work to expand production capacity and product support capability in Strategic Markets by anticipating their market growth, demand expanded especially in China, Asia and Latin America in the first quarter under review. In the Traditional Markets of Japan, North America and Europe, demand bottomed out, and thus showed improvement from the corresponding period a year ago. Against the backdrop of demand recovery worldwide, consolidated net sales of construction, mining and utility equipment advanced by 42.3% from the previous first quarter, to JPY405.2 billion (USD4,605 million).

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

		First quarter ended				First quarter ended
		June 30, 2010				June 30, 2009				Changes
		[A]				[B]				[A-B]				(A-B)/B
Japan			54,419				51,727				2,692				5.2	%
Americas			98,249				72,816				25,433				34.9	%
Europe & CIS			39,603				32,096				7,507				23.4	%
China			98,493				55,497				42,996				77.5	%
Asia* & Oceania			92,972				54,397				38,575				70.9	%
Middle East & Africa			21,470				18,162				3,308				18.2	%
Total			405,206				284,695				120,511				42.3	%

Japan

Demand for construction equipment bottomed out in Japan, and was supported by the recovery of private-sector capital investment in addition to the public-sector works remaining from the previous fiscal supplementary budget. Komatsu especially strengthened sales efforts in the quarry industry. First-quarter sales increased from the corresponding period a year ago.

In May this year, Komatsu Castex Ltd., a wholly owned subsidiary headquartered in Himi City, Toyama Prefecture in Japan, completed the construction of a new plant and expanded its production capacity for iron castings, a material for engine and other parts. This move is part of Komatsu’s efforts to expand its production capacity by anticipating growth in global demand for construction and mining equipment.

Americas

In North America, while the economies fell short of recovery, particularly as the U.S. housing starts remained sluggish, the operating rate of construction equipment began to increase gradually. Demand stopped falling after three and half years, and upturned for growth from the corresponding period a year ago. In Latin America, demand continued to expand in mining, civil engineering, agriculture and other sectors in Brazil, the largest market of this region. In Chile, demand for mining equipment remained strong. While demand recovered, Komatsu worked to increase selling prices in the Americas and strengthened sales and product support operations, particularly for mines in Latin America. As a result, first-quarter sales in the Americas improved from the corresponding period a year ago.

Europe & CIS

In Europe where the drastic decline in demand had continued, demand stopped falling, mainly in Germany, England and France, in the first quarter under review. Against this backdrop, Komatsu worked to strengthen its product support capability and expand sales of parts by teaming up with its distributors. As a result, first-quarter sales increased from the corresponding period a year ago. In CIS, demand for mining equipment began to recover, and first-quarter sales improved from the previous first quarter.

In Russia, Komatsu completed the construction of a plant of Komatsu Manufacturing Rus, LLC in June this year to produce hydraulic excavators and other equipment. Komatsu is anticipating mid to long-range growth in demand for construction and mining equipment in Russia, as the developments of natural resources and infrastructure will advance into the future. By promoting local production, Komatsu is better positioned to not only capture this growth of demand, but also cut down logistical costs and inventories and further strengthen product support operations.

China

Demand expanded sharply, as urbanization advanced and large-scale infrastructure development projects, such as railways and highways, continued under the leadership of the Chinese government. First-quarter sales increased from the corresponding period a year ago.

By anticipating further market expansion, Komatsu worked to reinforce production, sales and service operations. Specific measures included the plant transfer of Komatsu (Changzhou) Construction Machinery Corp., start-up preparations for Komatsu (Shandong) Cast Steel Co., Ltd, a manufacturing subsidiary for steel castings, and the KC Techno Center, and training of distributors’ service engineers in the special program, which Komatsu has sponsored since 2004, at the Shandong Jiaotong University.

Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand expanded substantially in civil engineering, agriculture and forestry sectors, in addition to mining. Demand also advanced in India, Thailand and Malaysia. In Australia, demand was strong in the mining sector. Against this backdrop, first-quarter sales in Asia & Oceania increased from the corresponding period a year ago, driven by doubled sales in Asia. In the first quarter under review, Komatsu also worked to reinforce operations, including the reorganization of distributors in Thailand and Australia. Furthermore, Komatsu continued to emphasize training of service engineers, who are capable of working around the world, at the Komatsu H.R.D. Center (Philippines) which was opened in 2008.

Middle East & Africa

The number of inquiries began to increase centering on mining equipment, as the trend of economic deterioration was reversed and commodities prices stabilized. Against this backdrop, while sales in Africa declined slightly from the corresponding period a year ago, sales expanded in the Middle East where sales had previously plummeted. As a result, first-quarter sales in the Middle East & Africa increased from the previous first quarter. Komatsu is expecting market expansion into the future to be accompanied by the development of new mines and the recovery of infrastructure development. Komatsu continued to strengthen its product support capability by establishing a training center jointly with a distributor in Kenya, following the training center opened in Senegal in the previous fiscal year.

Industrial Machinery and Others

Capital investment by the automobile manufacturing industry began to recover, centering on our Strategic Markets, such as China, India and Brazil. The number of orders received for large presses, small and medium-sized sheet metal and forging machines as well as machine tools upturned for growth. In addition, as the solar cell market continued to burgeon, sales of wire saws for use in slicing silicon ingots expanded, especially in China. As a result, first-quarter sales increased by 17.4% from the corresponding period a year ago, to JPY41.9 billion (USD477 million).

(2) Financial Conditions

As of June 30, 2010, total assets had decreased by JPY55.8 billion from the previous fiscal year-end, to JPY1,903.1 billion (USD21,627 million), largely due to the Japanese yen’s appreciation against other major currencies. Interest-bearing debt decreased by JPY30.8 billion from the previous fiscal year-end, to JPY555.5 billion (USD6,313 million). Komatsu Ltd. shareholders’ equity decreased by JPY15.4 billion from the previous fiscal year-end, to JPY818.5 billion (USD9,301 million). As a result, Komatsu Ltd. shareholders’ equity ratio increased by 0.4 percentage points from the previous fiscal year-end, to 43.0%. Net debt-to-equity ratio* was 0.57 compared to 0.60 as of the previous fiscal year-end.

For the first quarter period under review, net cash provided by operating activities increased by JPY54.3 billion from the corresponding period a year ago, to JPY55.2 billion (USD628 million), mainly due to an increase in net income. Net cash used in investing activities declined by JPY3 billion from the corresponding period a year ago, to JPY17.2 billion (USD196 million). Net cash used in financing activities totaled JPY30.8 billion (USD350 million), an increase of JPY45.4 billion, mainly due to repayments on short-term debt. As a result, cash and cash equivalents, as of June 30, 2010, totaled JPY84.3 billion (USD958 million), an increase of JPY1.9 billion from the previous fiscal year-end.

(3) Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

On July 13, the Company revised its projections of business results for the fiscal year ending March 31, 2011, 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.

Financial Statements

(1) Condensed Consolidated Balance Sheets

Assets

						Millions of yen
		As of June 30, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current assets
Cash and cash equivalents		¥	84,329							¥	82,429
Time deposits			2,087								1,132
Trade notes and accounts receivable			426,152								447,693
Inventories			378,691								396,416
Deferred income taxes and other current assets			122,549								112,451
Total current assets			1,013,808				53.3				1,040,121				53.1
Long-term trade receivables			157,560				8.3				150,972				7.7
Investments
Investments in and advances to affiliated companies			23,263								24,002
Investment securities			54,482								60,467
Other			2,121								2,399
Total investments			79,866				4.2				86,868				4.4
Property, plant and equipment
- Less accumulated depreciation			504,058				26.5				525,100				26.8
Goodwill			28,697				1.5				29,570				1.5
Other intangible assets			59,851				3.1				61,729				3.2
Deferred income taxes and other assets			59,323				3.1				64,695				3.3
Total		¥	1,903,163				100.0			¥	1,959,055				100.0

Liabilities and Equity

						Millions of yen
		As of June 30, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current liabilities
Short-term debt		¥	97,478							¥	123,438
Current maturities of long-term debt			111,160								105,956
Trade notes, bills and accounts payable			229,918								207,024
Income taxes payable			12,881								22,004
Deferred income taxes and other current liabilities			166,062								183,324
Total current liabilities			617,499				32.5				641,746				32.7
Long-term liabilities
Long-term debt			346,873								356,985
Liability for pension and retirement benefits			42,260								46,354
Deferred income taxes and other liabilities			35,764								37,171
Total long-term liabilities			424,897				22.3				440,510				22.5
Total liabilities			1,042,396				54.8				1,082,256				55.2
Komatsu Ltd. shareholders’ equity
Common stock			67,870								67,870
Capital surplus			140,421								140,421
Retained earnings:
Appropriated for legal reserve			32,726								31,983
Unappropriated			746,295								724,090
Accumulated other comprehensive income (loss)			(133,506	)							(95,634	)
Treasury stock			(35,300	)							(34,755	)
Total Komatsu Ltd. shareholders’ equity			818,506				43.0				833,975				42.6
Noncontrolling interests			42,261				2.2				42,824				2.2
Total equity			860,767				45.2				876,799				44.8
Total		¥	1,903,163				100.0			¥	1,959,055				100.0

(2) Condensed Consolidated Statements of Income

		Millions of yen except per share amounts
		First quarter ended								First quarter ended
		June 30, 2010								June 30, 2009
						Ratio								Ratio
						(%)								(%)
Net sales		¥	447,140				100.0			¥	320,428				100.0
Cost of sales			329,856				73.8				252,473				78.8
Selling, general and administrative expenses			62,947				14.1				59,486				18.6
Other operating income (expenses), net			(262	)			(0.1	)			(196	)			(0.1	)
Operating income			54,075				12.1				8,273				2.6
Other income (expenses), net			(3,971	)							455
Interest and dividend income			1,021				0.2				1,859				0.6
Interest expense			(1,669	)			(0.4	)			(2,731	)			(0.9	)
Other, net			(3,323	)			(0.7	)			1,327				0.4
Income before income taxes and equity in earnings of affiliated companies			50,104				11.2				8,728				2.7
Income taxes			17,466				3.9				2,181				0.7
Income before equity in earnings of affiliated companies			32,638				7.3				6,547				2.0
Equity in earnings of affiliated companies			641				0.1				(101	)			(0.0	)
Net income			33,279				7.4				6,446				2.0
Less net income attributable to noncontrolling interests			(2,582	)			(0.6	)			(1,683	)			(0.5	)
Net income attributable to Komatsu Ltd.		¥	30,697				6.9				¥ 4,763				1.5
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			31.72								4.92
Diluted			31.70								4.92

(3) Consolidated Statements of Equity

First quarter ended June 30, 2010		Millions of yen

										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				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															(7,749	)											(7,749	)			(102	)			(7,851	)
Transfer to retained earnings appropriated for legal reserve											743				(743	)											—								—
Other changes																											—				—				—
Comprehensive income (loss)
Net income															30,697												30,697				2,582				33,279
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(35,245	)							(35,245	)			(2,983	)			(38,228	)
Net unrealized holding gains (losses) on securities available for sale																			(3,350	)							(3,350	)			—				(3,350	)
Pension liability adjustments																			(215	)							(215	)			—				(215	)
Net unrealized holding gains (losses) on derivative instruments																			938								938				(60	)			878
Comprehensive income (loss)																											(7,175	)			(461	)			(7,636	)
Purchase of treasury stock																							(545	)			(545	)							(545	)
Sales of treasury stock																							—				—								—
Balance at June 30, 2010		¥	67,870			¥	140,421			¥	32,726			¥	746,295			¥	(133,506	)		¥	(35,300	)		¥	818,506			¥	42,261			¥	860,767

First quarter ended June 30, 2009		Millions of yen

										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2009		¥	67,870			¥	140,092			¥	28,472			¥	719,222			¥	(105,744	)		¥	(34,971	)		¥	814,941			¥	33,393			¥	848,334
Cash dividends															(17,431	)											(17,431	)			(300	)			(17,731	)
Transfer to retained earnings appropriated for legal reserve											2,309				(2,309	)											—								—
Other changes																											—				1,753				1,753
Comprehensive income (loss)
Net income															4,763												4,763				1,683				6,446
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			7,131								7,131				1,590				8,721
Net unrealized holding gains (losses) on securities available for sale																			3,477								3,477				—				3,477
Pension liability adjustments																			1,323								1,323				—				1,323
Net unrealized holding gains (losses) on derivative instruments																			28								28				254				282
Comprehensive income (loss)																											16,722				3,527				20,249
Purchase of treasury stock																							(7	)			(7	)							(7	)
Sales of treasury stock							(98	)															206				108								108
Balance at June 30, 2009		¥	67,870			¥	139,994			¥	30,781			¥	704,245			¥	(93,785	)		¥	(34,772	)		¥	814,333			¥	38,373			¥	852,706

(4) Consolidated Statements of Cash Flows

		Millions of yen
		First quarter				First quarter
		ended June 30,				ended June 30,
		2010				2009
Operating activities
Net income		¥	33,279			¥	6,446
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			21,433				22,003
Deferred income taxes			8,308				(5,535	)
Net loss (gain) from sale of investment securities and subsidiaries			33				65
Net loss (gain) on sale of property			(585	)			(95	)
Loss on disposal of fixed assets			457				396
Pension and retirement benefits, net			(3,074	)			(1,290	)
Changes in assets and liabilities:
Decrease (increase) in trade receivables			(15,202	)			7,327
Decrease (increase) in inventories			(4,336	)			32,124
Increase (decrease) in trade payables			32,280				(46,896	)
Increase (decrease) in income taxes payable			(8,086	)			(2,373	)
Other, net			(9,261	)			(11,265	)
Net cash provided by (used in) operating activities			55,246				907
Investing activities
Capital expenditures			(18,829	)			(24,927	)
Proceeds from sale of property			2,043				5,342
Proceeds from sale of available for sale investment securities			2				73
Purchases of available for sale investment securities			(536	)			(1,500	)
Acquisition of subsidiaries and equity investees, net of cash acquired			762				1,153
Collection of loan receivables			305				353
Disbursement of loan receivables			(27	)			(677	)
Decrease (increase) in time deposits			(935	)			(88	)
Net cash provided by (used in) investing activities			(17,215	)			(20,271	)
Financing activities
Proceeds from long-term debt			17,893				55,954
Repayments on long-term debt			(5,367	)			(7,207	)
Increase (decrease) in short-term debt, net			(25,478	)			(6,217	)
Repayments of capital lease obligations			(9,977	)			(9,430	)
Sale (purchase) of treasury stock, net			(6	)			101
Dividends paid			(7,749	)			(17,431	)
Other, net			(133	)			(1,117	)
Net cash provided by (used in) financing activities			(30,817	)			14,653
Effect of exchange rate change on cash and cash equivalents			(5,314	)			310
Net increase (decrease) in cash and cash equivalents			1,900				(4,401	)
Cash and cash equivalents, beginning of year			82,429				90,563
Cash and cash equivalents, end of period		¥	84,329			¥	86,162

(5) Note to the Going Concern Assumption

None

(6) Business Segment Information

1) Operating Segments

(For the first quarter ended June 30, 2010)		Millions of yen

		Construction,
		Mining and				Industrial
		Utility				Machinery and								Corporate &
		Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			405,206				41,934				447,140				—				447,140
Intersegment			438				2,303				2,741				(2,741	)			-—
Total			405,644				44,237				449,881				(2,741	)			447,140
Segment profit			54,265				2,035				56,300				(1,963	)			54,337

(For the first quarter ended June 30, 2009)		Millions of yen

		Construction,				Industrial
		Mining and				Machinery and								Corporate &
		Utility Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			284,695				35,733				320,428				—				320,428
Intersegment			786				4,043				4,829				(4,829	)			—
Total			285,481				39,776				325,257				(4,829	)			320,428
Segment profit			7,437				2,877				10,314				(1,845	)			8,469

Notes: 1)

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

	a)		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
	b)		Industrial Machinery and Others
			Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others

2)

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

2) Geographic Information

Net sales to customers recognized by sales destination for the first quarter ended June 30, 2010 and 2009 are as follows:

(For the first quarter ended June 30, 2010)		Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

71,425

101,576

39,752

114,892

98,019

21,476

447,140

(For the first quarter ended June 30, 2009)		Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

68,759

80,377

36,064

59,414

57,651

18,163

320,428

(7) Note in Case of a Notable Changes in the Amount of Shareholders’ Equity

None

(end)