Issue link: https://read.dmtmag.com/i/1245531
I DA U N I V E R S A L M ay -J u n e 2 0 2 0 25 TRENDS AND TIDBITS continued from page 23 and chairman of the company. e sales projections are based on an expected decrease in end-user demand of between four percent and nine percent and a decline in dealer inven- tories of between $1.0 billion and $1.5 billion. Likely, the negative eff ect of the coronavirus on the global construction industry would further depress the outlook. Approximately 10 percent of the company's sales come from China, and heavy equipment demand in the country this year will be lower than projected, due to a weak Q1. Caterpillar has multiple facilities in China. ey stayed closed for an extra week a er the Lunar New Year break. Most of them reopened only on Feb.10. Komatsu Like Caterpillar, Komat- su's fi nancial results show an ongoing slowdown in its business segment related to global construction. e company's fi scal year termi- nates on March 31 and, hence, the last three months of 2019 represent a Q3 for Komatsu. e overall sales for Q3, reported by the company at the end of January, were down 12.4 percent compared to the same period a year ago. Net income in the compa- ny's Q3 dropped 23.1 percent year-over-year. Even though the previous two quarters were stronger, the overall sales and net income for the nine months ended December 31, 2019, were down by 9.5 percent and 26.6 percent, respectively. e profi tability for the construction, mining and utility equipment division in the last quarter of 2019 dropped to 9.7 percent from 13.7 percent a year ago. e construction, mining and utility equipment segment provides approximately 92 percent of the company's sales revenues. According to Komatsu's presentation, in this segment, "Sales decreased from the corresponding period a year ago, adversely aff ected by reduced sales volume and foreign exchange rates. Segment profi t declined, mainly due to reduced sales volume and a change in the geographic composition of sales." Komatsu's manage- ment has issued guidance that the company's sales and net income for full 2019 (ending on March 31, 2020) will decrease by 9.3 percent and 29.8 percent year-over- year, respectively. e weak performance results from the decrease in quarterly sales of the construction, mining and utility equipment division in Asia (including China), followed by North America and Japan. As in the case with Cater- pillar, the negative eff ect of the coronavirus on Chinese and other Asian economies is likely to exacerbate Komatsu's weakening sales of heavy machinery. ● https://canada.constructconnect.com/ dcn/new, 3/20 Continued from page 23 2020 IDA CONVENTION & TRADE SHOW OCTOBER 28-30 Hilton Orlando Buena Vista Palace Orlando, Florida Register and reserve your booth online at www.idaparts.org 100 102 104 108 110 Parts Connection 101 103 105 109 111 ALto 200 202 204 208 210 Olofsfors 201 Gorilla Hydraulic 203 205 209 211 213 Pro Diesel 300 Sejin 302 304 Gearflow 308 Seal Source 301 BLS 309 World Gasket 400 ITR 402 Bulldog 404 FMC 408 4N 410 ESCO Industries 412 Abilene Machine Entrance 409 Valley Blades 411 413 Rock & Dirt 508 Maxiforce 510 512 CardConnect 509 ESCO Group 511 Machinery Trader 513 Isoft Data 310 & 312 Costex 311 & 313 Interstate McBee 503 & 505 Black Cat Blades 502 & 504 IPD 403 & 405 KTSU 303 & 305 Paint Valley Equip. Friday, October 30 – Coffee AM & Reception 3:00 PM