NEWS : Komatsu to keep raising prices as hit from US tariffs doubles: CFO Japan construction equipment maker expects $520m profit boost from hikes in fiscal 2025
TOKYO -- Komatsu plans to "continue raising prices globally at the same pace as this fiscal year" in fiscal 2026, Chief Financial Officer Takeshi Horikoshi recently told Nikkei, aiming to offset inflation as well as U.S. tariff effects that are forecast to double that year.
The Japanese manufacturer estimates that American duties, including the steel and aluminum levies imposed in March 2025 as well as country-by-country "reciprocal" tariffs, will dent group operating profit by 55 billion yen ($346 million) for the fiscal year ending this March. With such other factors as exchange rates also weighing on earnings, the company sees operating profit falling 24% to 500 billion yen.
The tariff impact is expected to roughly double in fiscal 2026 to 120 billion yen, as Komatsu will have gone through the inventory it had built up before the tariffs took effect, forcing it to bring in more equipment and parts from outside the U.S.
Boosting the P/E ratio will likely require lowering Komatsu's cost of capital while boosting its expected rate of cash flow growth.
"There are big differences between the markets where [Komatsu and its rivals] are listed, but besides that, there's a very large gap in expected cash flow growth between us and our overseas peers," Horikoshi said. "We're giving investors a detailed explanation of the growth potential of the mining equipment business that's driving our sales."
Komatsu also plans to focus on growth investments, such as capital spending and mergers and acquisitions, he said.
資料：NIKKEI ASIA
2026-01-14 16:52:20
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