Komatsu Ltd Q1 2020 Earnings Net Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst : This is Sano from JPMorgan. Earlier, first of all, you said that Q1 sales was slightly lower than the internal target. I believe that underperformance was caused mainly by Industrial Machinery or Gigaphoton and also the U.S. business. Were there any business which overperformed? Or were there any business which overperformed -- or underperformed? Unidentified Company Representative First of all, we did not have any major underperformance. Sales were only slightly below the plan or almost in line with the plan. Although, it is true that industrial machinery is slightly below the plan for reasons I just mentioned. If I can elaborate on construction equipment. Due to the declining volume in China and Indonesia, some gap was caused, but it was almost offset by the gain from foreign exchange rate translation, and overall sales were almost in line with the plan. As for profits, as explained earlier, we are controlling fixed costs more tightly compared with the plan, and there were some unexpected profits as well not included in the plan. So profits were slightly higher compared with the plan.

Question: Tomohiko Sano - JP Morgan Chase & Co, Research Division - Analyst : Understood. My last and third question is about Europe. During Q1, Europe must have recorded a double-digit growth, even on a local currency basis. The Q1 result was only 2%, but full year forecast is 5% to 10%. I know that I shouldn't compare Q1 to Q1, but is the full year demand outlook generally in line with your expectation? Are there any comments on any geographies?