Covid-19: Komatsu’s halt production in Asia & Oceania, Europe and America

In compliance with the policies of host governments of countries where the Komatsu conducts business, they are making the utmost efforts to prevent Covid-19 from spreading. They place top priority on the health and safety of their customers, local community residents and employees.

Source: Komatsu

Komatsu companies in Japan are engaged in business in compliance with the Japanese government and related prefectural governments. Based on the state of emergency declared by the Japanese government on April 7, they have ordered their employees, who are working for bases in the emergency-designated prefectures, including the Tokyo Metropolitan Area, to engage in teleworking as a general rule. Concerning their production bases (plants), they will conduct business according to the guidelines defined by the concerned prefectural governments. Specifically, they are limiting the work of those employees directly engaging in production to taking infection-preventive measures (fever checks, no use of public transportation, and the avoidance of crowded places, such as locker rooms) before starting work.

1.Effects on production and sales

Komatsu Group has worked on the global cross-sourcing and procurement of finished products and parts in order to absorb the impact of changes in market demand and foreign exchange rates. They are working to minimize the effects on production by means of alternative procurement and inventory reallocation. Concerning the production bases other than those listed below, they comply with the guidelines of concerned governments, implement infection-preventative measures, and operate them under normal conditions.

Conditions of main production bases by region (As of April 9, 2020).

Bases, as affected by haling operations, are described below.

In the regions under the regulations issued by different governments of the world, they have seen the effects of the pandemic, such as suspension of business by customers. With respect to sales, a growing number of their distributors, centering on Americas, Europe, and Asia, are promoting teleworking of their employees. To ensure a continuing supply of products and spare parts to customers, Komatsu group is implementing such measures as the reassessment of supply routes and shift work.

2.Effects on business results

Consolidated business results for FY2019 (ending March 31, 2020), projected on October 30, 2019, include no impact of the coronavirus pandemic. They will disclose any considerable effects as soon as they become aware of them. As different governments around the world are strengthening their regulations, such as strict curfews, they are working to ensure sufficient time to engage in stringent financial closing and auditing and emphasizing the health and safety of all employees of the Komatsu Group and the contracted accounting firm’s employees, who are involved in financial closing of the fiscal year. Accordingly, they have changed the date of announcing their financial results to May 18 from April 30, 2020.

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