UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

For the month of August, 2011

COMMISSION FILE NUMBER: 1-7239

KOMATSU LTD.

Translation of registrant’s name into English

3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan
Address of principal executive office

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ     Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

INFORMATION TO BE INCLUDED IN REPORT

1. A company announcement made on July 28, 2011.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Komatsu Ltd.
Corporate Communications Dept.
Tel: +81-(0)3-5561-2616
Date: July 28, 2011
URL: http://www.komatsu.com/

Consolidated Business Results for the First Quarter of the Fiscal Year Ending
March 31, 2012 (U.S. GAAP)

1. Results for the First Quarter of the Fiscal Year Ending March 31, 2012

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

		Millions of yen except per share amounts
		First quarter				First quarter
		ended June 30,				ended June 30,
		2011				2010				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Net sales			494,177				447,140				47,037				10.5	%
Operating income			68,369				54,075				14,294				26.4	%
Income before income taxes and equity in earnings of affiliated companies			68,441				50,104				18,337				36.6	%
Net income attributable to Komatsu Ltd.			55,706				30,697				25,009				81.5	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic		¥	57.55			¥	31.72			¥	25.83
Diluted		¥	57.50			¥	31.70			¥	25.80

(2) Consolidated Financial Position

		Millions of yen except per share amounts
		As of June 30, 2011				As of March 31, 2011
Total assets			2,216,071				2,149,137
Total equity			988,693				972,680
Komatsu Ltd. shareholders’ equity			948,057				923,843
Komatsu Ltd. shareholders’ equity ratio			42.8	%			43.0	%
Komatsu Ltd. shareholders’ equity per share (Yen)		¥	979.41			¥	954.48

2. Dividends

(For the fiscal years ended March 31, 2011 and ending March 31, 2012)

		2011				2012 Projections
Cash dividends per share (Yen)
First quarter period
Interim (Second quarter period)			18				21
Third quarter period
Year-end			20				21
Total			38				42

3. Projections for the Fiscal Year Ending March 31, 2012

(From April 1, 2011 to March 31, 2012)

		Millions of yen except per share amounts
		The first half of the year								The full fiscal year
						Changes								Changes
Net sales			1,065,000				23.9	%			2,150,000				16.6	%
Operating income			143,000				37.6	%			305,000				36.8	%
Income before income taxes and equity in earnings of affiliated companies			141,000				40.8	%			300,000				36.5	%
Net income attributable to Komatsu Ltd.			100,000				56.8	%			200,000				32.7	%
Net income attributable to Komatsu Ltd. per share (basic) (Yen)		¥	103.32							¥	206.63

4. Others

(1)		Changes in important subsidiaries during the first quarter period under review: Applicable Removed (merger): 1 company Komatsu Utility Co., Ltd.
(2)		Use of simplified accounting procedures and adoption of specific accounting procedures for the preparation of consolidated quarterly financial statements: None
(3)		Changes in accounting standards, procedures and presentations for the preparation of consolidated quarterly financial statements

	1)		Changes resulting from revisions in accounting standards, etc.: None
	2)		Change in other matters except for 1) above: None

(4)

Number of common shares outstanding

1)

The numbers of common shares issued (including treasury stock) were as follows:

As of June 30, 2011:		998,744,060 shares
As of March 31, 2011:		998,744,060 shares

2)

The numbers of shares of treasury were as follows:

As of June 30, 2011:		30,760,732 shares
As of March 31, 2011:		30,841,419 shares

3)

The weighted average numbers of common shares outstanding were as follows:

First quarter period ended June 30, 2011:		967,942,471 shares
First quarter period ended June 30, 2010:		967,834,078 shares

Appendix

Management Performance and Financial Conditions
(1) Outline of Operations and Business Results			P.4
(2) Financial Conditions			P.8
(3) Projections for the Fiscal Year Ending March 31, 2012			P.8
Financial Statements
(1) Condensed Consolidated Balance Sheets			P.9
(2) Condensed Consolidated Statements of Income			P.11
(3) Consolidated Statements of Equity			P.12
(4) Consolidated Statements of Cash Flows			P.13
(5) Note to the Going Concern Assumption			P.14
(6) Business Segment Information			P.14
(7) Note in Case of a Notable Changes in the Amount of Shareholders’ Equity			P.14

Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) have embarked on the Global Teamwork for Tomorrow mid-range management plan for three years, to be completed in the fiscal year ending March 31, 2013. Under this management plan, Komatsu is focusing its efforts on (1) promotion of ICT applications to products and parts, (2) further advancement of environmental friendliness and safety in machine performance, (3) expansion of sales and service operations in Strategic Markets, and (4) promotion of continuous Kaizen (improvement) by strengthening workplace capability.

In the first quarter (three months from April 1 to June 30, 2011) of the second year of the ongoing management plan, demand for construction and mining equipment continued to remain brisk in Strategic Markets, especially in Asia, while it declined in China and some other countries. In Traditional Markets, demand recovered steadily. Demand for industrial machinery continued to recover slowly. Against this backdrop, consolidated net sales increased to JPY494.1 billion (USD6,101 million, at USD1=JPY81) for the first quarter under review, up 10.5% from the corresponding period a year ago.

In the first quarter under review, the Japanese currency appreciated against the U.S. dollar and Renminbi more than the previous first quarter a year ago; however, Komatsu expanded the volume of sales, while improving selling prices as well as production and other costs. As a result, operating income for the first quarter advanced to JPY68.3 billion (USD844 million), up 26.4% from the corresponding period a year ago. Similarly, operating income ratio improved by 1.7 percentage points to 13.8%. Income before income taxes and equity in earnings of affiliated companies increased by 36.6% to JPY68.4 billion (USD845 million). Net income attributable to Komatsu Ltd. totaled JPY55.7 billion (USD688 million), an improvement of 81.5%.

While Komatsu had initially been concerned about some adverse effects on its production and procurement operations from the Great East Japan Earthquake of March 11, 2011 and the subsequent shortage of power supply, all its plants have been operating in good condition. In addition to continuing its energy-saving efforts in various ways, Komatsu has increased the amount of in-house power generation equipment, as it works to sustain stable production in order to smoothly supply construction equipment to the disaster-stricken regions.

[Markets as Positioned by the Komatsu]

Traditional Markets		Japan, North America and Europe
Strategic Markets		China, Latin America, Asia, Oceania, Africa, Middle East and CIS

[Consolidated Financial Highlights]

		Millions of yen
		First quarter				First quarter
		ended June 30,				ended June 30,
		2011				2010
		1USD=JPY81				1USD=JPY91
		1EUR=JPY118				1EUR=JPY115
		1RMB=JPY12.5				1RMB=JPY13.4				Changes
		[A]				[B]			[(A-B)/B]
Net sales			494,177				447,140				10.5	%
Operating income			68,369				54,075				26.4	%
Income before income taxes and equity in earnings of affiliated companies			68,441				50,104				36.6	%
Net income attributable to Komatsu Ltd.			55,706				30,697				81.5	%

Business results by operation are described below.

[Sales by Operation]

		Millions of yen
		First quarter				First quarter
		ended June 30,				ended June 30,
		2011				2010				Changes
		[A]				[B]			[(A-B)/B]
Construction, Mining and Utility Equipment			435,324				405,206				7.4	%
Industrial Machinery and Others			58,853				41,934				40.3	%
Total			494,177				447,140				10.5	%

Construction, Mining and Utility Equipment

In Strategic Markets, demand remained strong, centering on Asia, while it declined in China, Brazil and some other countries. In Traditional Markets, demand in Japan and North America recovered firmly. Against this backdrop, consolidated net sales of construction, mining and utility equipment totaled JPY435.3 billion (USD5,374 million) for the first quarter under review, up 7.4% from the corresponding period a year ago.

During the first quarter, Komatsu began launching the HB205 and HB215LC hybrid hydraulic excavators on overseas markets, which followed their market introduction in Japan in December last year. With respect to the utility equipment business, which consists of forklift trucks and mini construction equipment, the Company absorbed and merged with Komatsu Utility Co., Ltd. in April this year in order to speed up the pace of strengthening its business in overseas markets, further improve their product competitiveness, and streamline the efficiency of product development.

[Sales of Construction, Mining and Utility Equipment by Region]

		Millions of yen
		First quarter ended				First quarter ended
		June 30, 2011				June 30, 2010				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Japan			61,436				54,419				7,017				12.9	%
Americas			106,173				98,249				7,924				8.1	%
Europe & CIS			53,556				39,603				13,953				35.2	%
China			75,454				98,493				(23,039	)			(23.4	)%
Asia* & Oceania			109,109				92,972				16,137				17.4	%
Middle East & Africa			29,596				21,470				8,126				37.8	%
Total			435,324				405,206				30,118				7.4	%

Japan

As demand grew for construction equipment, an essential tool for the recovery and reconstruction of the disaster-stricken regions of the Great East Japan Earthquake and tsunami, centering on rental use, Komatsu quickly recovered production and secured supply operations. As a result, first-quarter sales improved from the previous first quarter a year ago. Sales of new hybrid hydraulic models remained brisk.

With respect to the rental equipment business, the Company has decided to reorganize it to further improve the quality of customer services and the efficiency of operation. Specifically, the Company is going to absorb Komatsu Rental Ltd. in July this year and take over the rental equipment assets of Komatsu Rental Ltd., while a new rental subsidiary will take over and engage exclusively in the rental equipment business.

Americas

In North America, overall demand for construction equipment remained firm, supported by expanded demand in the rental equipment industry. In this market environment, Komatsu embarked on sales of new models compliant to new emission control regulations, as well as new hybrid hydraulic excavator models. Komatsu also continued to promote the zero inventory of distributors campaign which was kicked off last year. In Latin America, while demand for construction equipment for use in civil engineering was sluggish as adversely affected by the credit squeeze and the belated start of public works in Brazil, the largest market of Latin America, demand for mining equipment remained strong in Chile and other countries. As a result, first-quarter sales in the Americas increased from the corresponding period a year ago.

Europe & CIS

First-quarter sales improved from the previous first quarter a year ago, reflecting both recovered market conditions in major markets centering on Germany and concerted efforts especially to expand sales of parts. As a result, first-quarter sales in Europe & CIS improved from the previous first quarter a year ago. Komatsu also launched sales of new hybrid hydraulic excavators in some markets.

In CIS, demand for large equipment grew sharply, centering on use for coal, gold and other resource mining, as well as energy development, such as oil and natural gas. As a result, first-quarter sales increased from the previous first quarter a year ago. Komatsu also continued to strengthen product support operations, as represented by parts repairing and technical support for mining equipment at the new Kuzbass Support Center in Siberia.

China

First-quarter sales decreased from the corresponding period a year ago, as demand for construction equipment declined particularly for use in civil engineering as adversely affected by the government’s credit squeeze policy and belated purchase of land for public works. However, Komatsu projects that the Chinese market will continue to grow in the mid to long-range span against the backdrop of advancing urbanization and other factors. In this light, Komatsu continued to expand its production, sales and product support capabilities by increasing the production capacity of Komatsu (Changzhou) Construction Machinery Corp. and training service engineers of its distributors at the KC Techno Center and in the special training course at Shandong Jiaotong University.

Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand for mining equipment continued to expand, while demand for construction equipment remained strong in the civil engineering, agriculture and forestry sectors. Demand was also strong in India, Malaysia and some other countries. In Australia, demand for large equipment for use in mines was also strong. Reflecting these market conditions, first-quarter sales in Asia & Oceania increased from the previous first quarter a year ago.

During the first quarter, Komatsu embarked on sales of new hybrid hydraulic excavator models in some countries, while working to introduce KOMTRAX (Komatsu Machine Tracking System)-installed standard construction equipment to more regions. In Australia, Komatsu worked to reinforce sales and product support operations, as represented by reorganized distributor functions in August last year and improved efficiency of local assembly work. In Indonesia, Komatsu opened a pilot plant of the bio diesel fuel project designed to reduce environmental impact.

Middle East & Africa

While political and social conditions have continued to be unstable in some countries, demand for equipment was strong especially for use in mines in Africa. In these market conditions, first-quarter sales improved from the previous first quarter a year ago. Komatsu anticipates that markets will continue to expand as driven by demand in mining and infrastructure development sectors. Komatsu continued its efforts to strengthen its sales and product support operations, as demonstrated by introducing KOMTRAX-installed standard construction equipment to some regions and opening the Dakar Office.

Industrial Machinery and Others

First-quarter sales of industrial machinery and other operations advanced by 40.3% from the previous first quarter a year ago, to JPY58.8 billion (USD727 million). In addition to an increase in sales of wire saws from the previous first quarter, which are used to slice silicon ingots, the basic material for solar cells, sales of machine tools also increased as capital investment by the automobile manufacturing industry headed gradually for recovery.

To further enhance the competitive strength of its industrial machinery business, Komatsu NTC Ltd. and Komatsu Machinery Corporation were merged into a single entity and the Company absorbed Komatsu Engineering Corp. in April this year. In May, the Company and Ushio Inc. terminated the 50-50 joint-venture agreement regarding Gigaphoton Inc. and purchased the remaining 50% shares from Ushio Inc. As a result, Gigaphoton has become a wholly owned subsidiary of the Company.

(2) Financial Conditions

As of June 30, 2011, total assets had increased by JPY66.9 billion from the previous fiscal year-end, to JPY2,216.0 billion (USD27,359 million), mainly due to an increase in inventories. Interest-bearing debt increased by JPY51.0 billion from the previous fiscal year-end, to JPY595.1 billion (USD7,347 million). Komatsu Ltd. shareholders’ equity increased by JPY24.2 billion from the previous fiscal year-end, to JPY948.0 billion (USD11,704 million). As a result, Komatsu Ltd. shareholders’ equity ratio decreased by 0.2 percentage points from the previous fiscal year-end, to 42.8%. Net debt-to-equity ratio* was 0.54 compared to 0.50 as of the previous fiscal year-end.

For the first quarter period under review, net cash used in operating activities amounted to JPY5.9 billion (USD73 million) due mainly to increased inventories, a decrease of JPY61.1 billion from JPY55.2 billion for net cash provided by operating activities for the previous first quarter period. Net cash used in investing activities amounted to JPY32.5 billion (USD401 million) due to acquisition of subsidiaries and equity investees, whereas net cash used in investing activities for the previous first quarter period totaled JPY17.2 billion. Net cash provided by financing activities amounted to JPY38.6 billion (USD478 million) due to procurement of long-term debt and an increase in short-term debt, whereas net cash used in financing activities for the previous first quarter period totaled JPY30.8 billion. As a result, cash and cash equivalents, as of June 30, 2011, totaled JPY83.0 billion (USD1,025 million), a decrease of JPY1.1 billion from the previous fiscal year-end.

(3) Projections for the Fiscal Year Ending March 31, 2012

(From April 1, 2011 to March 31, 2012)

In the construction, mining and utility equipment business, Chinese demand is not as big as projected earlier, however, Komatsu is anticipating a more-than-projected increase of demand in other Strategic Markets and Traditional Markets. In this light, Komatsu makes no change in the projection of April 27, 2011 concerning consolidated business results for the fiscal year ending March 31, 2012.

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured.

Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for the Company’s principal products, owing to changes in the economic conditions in the Company’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving the Company’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of the Company’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

Financial Statements

(1) Condensed Consolidated Balance Sheets

Assets

		Millions of yen
		As of June 30, 2011								As of March 31, 2011
						Ratio (%)								Ratio (%)
Current assets
Cash and cash equivalents		¥	83,049							¥	84,224
Time deposits			1,441								734
Trade notes and accounts receivable			510,076								532,757
Inventories			530,719								473,876
Deferred income taxes and other current assets			169,696								152,781
Total current assets			1,294,981				58.4				1,244,372				57.9
Long-term trade receivables			196,213				8.9				183,270				8.5
Investments
Investments in and advances to affiliated companies			20,090								25,115
Investment securities			53,679								60,855
Other			2,989								3,124
Total investments			76,758				3.5				89,094				4.1
Property, plant and equipment
— Less accumulated depreciation			510,188				23.0				508,387				23.7
Goodwill			30,253				1.4				29,321				1.4
Other intangible assets			60,373				2.7				53,971				2.5
Deferred income taxes and other assets			47,305				2.1				40,722				1.9
Total		¥	2,216,071				100.0			¥	2,149,137				100.0

Liabilities and Equity

		Millions of yen
		As of June 30, 2011								As of March 31, 2011
						Ratio (%)								Ratio (%)
Current liabilities
Short-term debt		¥	149,499							¥	130,308
Current maturities of long-term debt			138,577								122,608
Trade notes, bills and accounts payable			303,141								308,975
Income taxes payable			20,236								38,829
Deferred income taxes and other current liabilities			211,848								199,268
Total current liabilities			823,301				37.2				799,988				37.2
Long-term liabilities
Long-term debt			307,033								291,152
Liability for pension and retirement benefits			45,873								48,027
Deferred income taxes and other liabilities			51,171								37,290
Total long-term liabilities			404,077				18.2				376,469				17.5
Total liabilities			1,227,378				55.4				1,176,457				54.7
Komatsu Ltd. shareholders’ equity
Common stock			67,870								67,870
Capital surplus			140,582								140,523
Retained earnings:
Appropriated for legal reserve			37,147								34,494
Unappropriated			880,837								847,153
Accumulated other comprehensive income (loss)			(143,203	)							(131,059	)
Treasury stock			(35,176	)							(35,138	)
Total Komatsu Ltd. shareholders’ equity			948,057				42.8				923,843				43.0
Noncontrolling interests			40,636				1.8				48,837				2.3
Total equity			988,693				44.6				972,680				45.3
Total		¥	2,216,071				100.0			¥	2,149,137				100.0

(2) Condensed Consolidated Statements of Income

		Millions of yen except per share amounts
		First quarter ended								First quarter ended
		June 30, 2011								June 30, 2010
						Ratio								Ratio
						(%)								(%)
Net sales		¥	494,177				100.0			¥	447,140				100.0
Cost of sales			356,637				72.2				329,856				73.8
Selling, general and administrative expenses			69,428				14.0				62,947				14.1
Other operating income (expenses), net			257				0.1				(262	)			(0.1	)
Operating income			68,369				13.8				54,075				12.1
Other income (expenses), net			72								(3,971	)
Interest and dividend income			1,295				0.3				1,021				0.2
Interest expense			(1,888	)			(0.4	)			(1,669	)			(0.4	)
Other, net			665				0.1				(3,323	)			(0.7	)
Income before income taxes and equity in earnings of affiliated companies			68,441				13.8				50,104				11.2
Income taxes			11,136				2.3				17,466				3.9
Income before equity in earnings of affiliated companies			57,305				11.6				32,638				7.3
Equity in earnings of affiliated companies			581				0.1				641				0.1
Net income			57,886				11.7				33,279				7.4
Less net income attributable to noncontrolling interests			(2,180	)			(0.4	)			(2,582	)			(0.6	)
Net income attributable to Komatsu Ltd.		¥	55,706				11.3			¥	30,697				6.9
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			57.55								31.72
Diluted			57.50								31.70

(3) Consolidated Statements of Equity

First quarter ended June 30, 2011

		Millions of yen
										Retained earnings								Accumulated								Total Komatsu
										Appropriated								other								Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2011		¥	67,870			¥	140,523			¥	34,494			¥	847,153			¥	(131,059	)		¥	(35,138	)		¥	923,843			¥	48,837			¥	972,680
Cash dividends															(19,369	)											(19,369	)			(6,063	)			(25,432	)
Transfer to retained earnings appropriated for legal reserve											2,653				(2,653	)											—								—
Other changes																											—				(3,881	)			(3,881	)
Comprehensive income (loss)
Net income															55,706												55,706				2,180				57,886
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(10,241	)							(10,241	)			(421	)			(10,662	)
Net unrealized holding gains (losses) on securities available for sale																			(2,243	)							(2,243	)							(2,243	)
Pension liability adjustments																			(196	)							(196	)							(196	)
Net unrealized holding gains (losses) on derivative instruments																			536								536				(16	)			520
Comprehensive income (loss)																											43,562				1,743				45,305
Issuance and exercise of stock acquisition rights							(61	)																			(61	)							(61	)
Purchase of treasury stock																							(216	)			(216	)							(216	)
Sales of treasury stock							120																178				298								298
Balance at June 30, 2011		¥	67,870			¥	140,582			¥	37,147			¥	880,837			¥	(143,203	)		¥	(35,176	)		¥	948,057			¥	40,636			¥	988,693

First quarter ended June 30, 2010

		Millions of yen
										Retained earnings								Accumulated								Total Komatsu
										Appropriated								other								Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2010		¥	67,870			¥	140,421			¥	31,983			¥	724,090			¥	(95,634	)		¥	(34,755	)		¥	833,975			¥	42,824			¥	876,799
Cash dividends															(7,749	)											(7,749	)			(102	)			(7,851	)
Transfer to retained earnings appropriated for legal reserve											743				(743	)											—								—
Other changes																											—								—
Comprehensive income (loss)
Net income															30,697												30,697				2,582				33,279
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(35,245	)							(35,245	)			(2,983	)			(38,228	)
Net unrealized holding gains (losses) on securities available for sale																			(3,350	)							(3,350	)							(3,350	)
Pension liability adjustments																			(215	)							(215	)							(215	)
Net unrealized holding gains (losses) on derivative instruments																			938								938				(60	)			878
Comprehensive income (loss)																											(7,175	)			(461	)			(7,636	)
Issuance and exercise of stock acquisition rights																											—								—
Purchase of treasury stock																							(545	)			(545	)							(545	)
Sales of treasury stock																											—								—
Balance at June 30, 2010		¥	67,870			¥	140,421			¥	32,726			¥	746,295			¥	(133,506	)		¥	(35,300	)		¥	818,506			¥	42,261			¥	860,767

(4) Consolidated Statements of Cash Flows

		Millions of yen
		First quarter				First quarter
		ended June 30,				ended June 30,
		2011				2010
Operating activities
Net income		¥	57,886			¥	33,279
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			20,356				21,433
Deferred income taxes			(5,605	)			8,308
Net loss (gain) from sale of investment securities and subsidiaries			(130	)			33
Net loss (gain) on sale of property			(236	)			(585	)
Loss on disposal of fixed assets			388				457
Pension and retirement benefits, net			(838	)			(3,074	)
Changes in assets and liabilities:
Decrease (increase) in trade receivables			5,160				(15,202	)
Decrease (increase) in inventories			(57,626	)			(4,336	)
Increase (decrease) in trade payables			(14,083	)			32,280
Increase (decrease) in income taxes payable			(18,466	)			(8,086	)
Other, net			7,249				(9,261	)
Net cash provided by (used in) operating activities			(5,945	)			55,246
Investing activities
Capital expenditures			(24,067	)			(18,829	)
Proceeds from sale of property			2,991				2,043
Proceeds from sale of available for sale investment securities			410				2
Purchases of available for sale investment securities			(333	)			(536	)
Acquisition of subsidiaries and equity investees, net of cash acquired			(11,162	)			762
Collection of loan receivables			213				305
Disbursement of loan receivables			(61	)			(27	)
Decrease (increase) in time deposits			(504	)			(935	)
Net cash provided by (used in) investing activities			(32,513	)			(17,215	)
Financing activities
Proceeds from long-term debt			61,355				17,893
Repayments on long-term debt			(7,740	)			(5,367	)
Increase (decrease) in short-term debt, net			20,806				(25,478	)
Repayments of capital lease obligations			(17,524	)			(9,977	)
Sale (purchase) of treasury stock, net			23				(6	)
Dividends paid			(19,369	)			(7,749	)
Other, net			1,130				(133	)
Net cash provided by (used in) financing activities			38,681				(30,817	)
Effect of exchange rate change on cash and cash equivalents			(1,398	)			(5,314	)
Net increase (decrease) in cash and cash equivalents			(1,175	)			1,900
Cash and cash equivalents, beginning of year			84,224				82,429
Cash and cash equivalents, end of period		¥	83,049			¥	84,329

(5) Note to the Going Concern Assumption

None

(6) Business Segment Information

1) Information by Operating Segments

(For the first quarter ended June 30, 2011)

		Millions of yen
		Construction,
		Mining and				Industrial
		Utility				Machinery and								Corporate &
		Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			435,324				58,853				494,177				—				494,177
Intersegment			1,306				1,716				3,022				(3,022	)			—
Total			436,630				60,569				497,199				(3,022	)			494,177
Segment profit			60,886				8,844				69,730				(1,618	)			68,112

(For the first quarter ended June 30, 2010)

		Millions of yen
		Construction,
		Mining and				Industrial
		Utility				Machinery and								Corporate &
		Equipment				Others				Subtotal				elimination				Total
Net sales:
Customers			405,206				41,934				447,140				—				447,140
Intersegment			438				2,303				2,741				(2,741	)			—
Total			405,644				44,237				449,881				(2,741	)			447,140
Segment profit			54,265				2,035				56,300				(1,963	)			54,337

	a)		Construction, Mining and Utility Equipment
			Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines & components, casting products, and logistics
	b)		Industrial Machinery and Others
			Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment, and others
	2)		Transfers between segments are made at estimated arm’s-length prices.

2) Geographic Information

Net sales to customers recognized by sales destination for the first quarter ended June 30, 2011 and 2010 are as follows:

(For the first quarter ended June 30, 2011)

Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

83,931

109,062

53,646

101,904

116,033

29,601

494,177

(For the first quarter ended June 30, 2010)

Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

71,425

101,576

39,752

114,892

98,019

21,476

447,140

(7) Note in Case of a Notable Changes in the Amount of Shareholders’ Equity

None

(end)