Komatsu Ltd.

**Strong Q3 Performance and Record Highs**: Komatsu reported a 5.6% year-on-year increase in net sales to JPY 972 billion and a 15.9% rise in operating income to JPY 156.4 billion for Q3 FY 2023. Net income surged 42.4% to JPY 98.7 billion, driven by improved selling prices and favorable foreign exchange rates, marking all-time quarterly highs for net sales and segment profits.

**Segment Profit Insights**: The construction, mining, and utility equipment segment saw sales growth of 6.3% to JPY 918.2 billion, with segment profit increasing by 22.2% to JPY 149.1 billion. Retail finance revenue also rose by 23.2%, while profits in the industrial machinery and other segment declined significantly by 72.8%, indicating underlying challenges in specific areas of the business.

**Demand Trends and Forecasts**: Demand for FY 2023 is expected to decline by 10% to 15% overall, with specific markets showing varied performances. North America is predicted to hold steady, while Europe and China are projected to see substantial declines due to high interest rates and soft economic activity.