Komatsu Ltd - ADR

**Strong Financial Performance**: In Q3 fiscal '23, Komatsu reported a 5.6% year-on-year increase in net sales to JPY972 billion and a significant 42.4% jump in net income to JPY98.7 billion. Operating income also rose by 15.9% to JPY156.4 billion, highlighting strong operational efficiency and pricing improvements.

**Segment-Specific Insights**: The construction, mining, and utility equipment segment saw a 6.3% increase in net sales, reaching JPY918.2 billion, with segment profits up 22.2% to JPY149.1 billion. In contrast, retail finance revenue increased by 23.2%, but profits saw a decline of 10.6%, indicating regional disparities in performance.

**Market Demand Trends and Outlook**: Overall demand forecast for fiscal '23 is expected to decline by 10% to 15%, primarily driven by a severe downturn in the Chinese market (projected decline of 40% to 50%). Conversely, North America remains relatively stable, with steady demand from infrastructure and mining sectors, although some caution remains due to potential risks in the residential market.