REFILE-Komatsu raises 2010/11 profit forecast by 14 pct

(Corrects profit growth estimate in first paragraph to …14
percent… instead of … nearly a quarter)

TOKYO, July 13 (BestGrowthStock) – Komatsu Ltd (6301.T: ), the world’s
No.2 construction machinery maker, upgraded its full-year profit
forecast by 14 percent on Tuesday, citing better first-half sales
than expected in Asia and Latin America, as well as a pickup in
demand in Japan and the United States.

Komatsu said it now expects an operating profit of 179
billion yen ($2.02 billion) for the year to March 31, nearly 20
percent above a market consensus estimate of 151.98 billion yen
in a poll of 17 analysts by Thomson Reuters I/B/E/S.

Its previous operating profit forecast, announced in April,
was 157 billion yen.

Komatsu last year aggressively cut fixed costs to bolster its
operating profit-to-sale margin to 9.5 percent this financial
year, up from 7.2 percent in January-March, the final quarter of
last financial year.

Komatsu, which competes with U.S. giant Caterpillar Inc
(CAT.N: ), raised its revenue forecast for this financial year by
3.3 percent to 1.72 trillion yen.

Komatsu is also increasing its presence in emerging Asian
economies and China, which is spending aggressively on housing
and infrastructure projects, driving up demand for wheel loaders,
hydraulic excavators and mining equipment.

The company said in March its sales in China will climb 30
percent this financial year, with its revenues from emerging
markets making up 68 percent of total sales during the year.
($1=88.65 Yen)
(Reporting by Yuko Inoue; Editing by Michael Watson)

REFILE-Komatsu raises 2010/11 profit forecast by 14 pct