Shares of Japanese machinery maker Komatsu (
) fell precipitously in Wednesday trading after lowering its profit
outlook and manufacturing numbers across the region
[caption id="attachment_64174" align="alignright" width="300"
caption="The Nikkei 225 dropped after Komatsu and Honda's
Komatsu disappointed markets after the firm informed investors
today that its
fiscal year operating profit and sales
were likely to be lower than expected.
According to Reuters, Komatsu "
lowered its consolidated mid-year outlook
for revenue from ¥1,010,000 million to ¥940,000 million, operating
profit from ¥42,000 million to ¥111,000 million, ordinary profit
from ¥138,000 million to ¥105,000 million, net profit from ¥84,000
million to ¥64,000 million and earnings per share from ¥88.21 to
¥67.20, for the fiscal year ending March 2013."
The CEO of Komatsu cited tough competition from China as a
principal factor in the firm's decreased profit forecast.
The firm's Tokyo-listed shares dropped 7.1% in the wake of the
news, as well as other economic factors.
Firms in Komatsu's sector throughout Asia dipped on the day as
manufacturing data from the region came in lower than expected. The
much-anticipated HSBC Purchasing Manager's Index data for the
Chinese economy (
) came in at 49.3, beating June's mark of 48.2, but still under the
50 threshold that indicates growth.
The PMIs for India (
), Taiwan (
), and South Korea (
) also disappointed market observers, pressuring Asian markets
As the result of a combination of companies guiding lower and
poor regional macroeconomic data, equities on the benchmark Nikkei
) were adversely affected, ending the day down 0.61%. In addition
to Komatsu, Honda Motor Corporation (
) released its quarterly report. While the results themselves were
impressive -- the company saw its quarterly profit rise four-fold
year-over-year -- the company maintained its outlook going forward,
which caused the stock to drop 5%.
Investors in America should anticipate the pink sheets for
Komatsu and the ADRs for Honda to move lower in Wednesday