Did Komatsu See A Decline In Equipment Sales In The USA Market?

Komatsu is one of the industry sharks that is known to provide reliable, affordable and advanced heavy equipment to its customers. It has a quite bright and positive image among people due to its dedication to never compromise on quality and pricing when it comes to heavy construction, mining and agriculture equipment. 

What has happened in the last few months? The sales report is not as inspiring this time as it needs to be. 

Komatsu sales have declined due to the challenging and extremely stiff market. Although net sales revenue has grown for a while, the overall sales are still under stress. 

Change in currency increases the sales

Surprisingly, in the third quarter of 2024, a slight increase in the sales of Komatsu equipment was seen by 1.8%. However, rather than a real rise in unit sales, this expansion was mostly driven by higher selling prices and advantageous foreign exchange rates. 

Despite the challenging market, the company’s profit for the quarter increased 6.8% to $1.1 billion, demonstrating some resilience.

On the other hand, the sales of construction, mining, and utility equipment remained unchanged at the same $6 billion. A few segments, however, have seen a 1.4% decrease in sales. 

Some sneak peeks from North American Market

In every sales report of the big brands, the North American market performance is looked at with excitement. Everyone knows that this market is a real game changer for all construction-related businesses including equipment manufacturers. 

The slight changes in this market can drive a big sales growth or drop for any company. 

Talking about the Komatsu sales drop, the North American market must have played a vital role. In the third quarter of 2024, Komatsu has seen less than 1% sales by $1.7 billion.

However, Komatsu’s parts sales continued to be a strong point, increasing 5% to $1.6 billion in the third quarter. 

For the fiscal year, the company expects that total parts sales will increase by 5%, to an anticipated $6.6 billion.

Apart from the disappointing decline in sales, there are still chances to recover from the losses. Future projects might help grow the demand for Komatsu construction and mining equipment. 

How was the market performance over the last 9 months?

Overall, Komatsu’s performance over the past nine months indicates that net sales have increased by 5.8% to $19.2 billion, which is still an optimistic sign. 

During this time, profit increased by a moderate 3.6% to $3 billion whereas, the mining, utility, and construction industries generated $17.8 billion in revenue, a 4.7% increase over the previous year.

As an equipment trader, Are you curious about the previous 9 months’ performance of the Komatsu in the North American Market? This is quite interesting to know that in this time period, Komatsu has not performed so well in the North American market. The revenue dropped 4.1%, making $4.9 billion overall revenue. 

This is actually an alarming situation which shows that this market is still in danger as the demand for the equipment is not as promising as it needs to be.

Despite these obstacles, Komatsu continues to project a 3.2% rise in net sales for the entire year, with total revenues expected to reach $25.8 billion by the end of 2024. 

To everyone’s surprise, in this tough and challenging time and market situation, Komatsu has still performed better than others with a clear projection of a 3.2% rise in net sales. This sales figure is taken from the entire year’s sales which makes a total of $25.8 billion in revenue.

Despite of tough market situation and declined sales in brands, you can still get the best deal on used construction equipment at MY Equipment. Our stock of used heavy equipment for sale is ready to serve you with the best and most compatible equipment for your next construction project. Explore our inventory now and get what you need.

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