Komatsu Ltd. announced today its business results for the first three-month period of the fiscal year ending March 31, 2011. Highlights are described below.

1. Sales and profits for the first quarter of the fiscal year ending March 31, 2011
Both sales and profits expanded and operating income ratio improved to 12.1%.

2. Review of two business segments

Construction, Mining & Utility Equipment:
Demand for construction and mining equipment advanced substantially in Strategic Markets, such as China, Asia and Latin America, while demand bottomed out in the Traditional Markets of Japan, North America and Europe. Demand increased in all regions from the corresponding period a year ago. While the Japanese yen appreciated sharply against the U.S. dollar, Euro and Renminbi, sales advanced by 42.1% and segment profit by 7.3 times from the previous first quarter, partly supported by improved productivity.

Industrial Machinery & Others:
Orders received for presses and machine tools increased, reflecting the recovery of capital investment by the automobile manufacturing industry mainly in Strategic Markets, such as China, India and Brazil. Additionally, sales of wire saws accelerated, as the solar cell industry continued to burgeon. As a result, sales of this segment increased by 11.2% from the previous first quarter. Segment profit declined by 29.3% as affected by the gain on reversal of allowance for doubtful receivables which was recorded for the previous first quarter.

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