Komatsu Forecasts Growth HOT STOCKS
The head of Komatsu, the world’s second-biggest earth-moving equipment maker, expects its revenues to grow more than 10 percent next business year even as the global financial crisis threatens economic growth.
Kunio Noji, Komatsu’s chief executive officer, said that a likely increase in public works spending in China would help keep economic growth strong and commodities prices high enough to spur on the mining projects that use its equipment. Noji said he expects Komatsu’s sales growth to outstrip the market in the business year starting next April, boosted by strong demand for high-margin products such as components, mining equipment and large-scale hydraulic excavators.
Mining companies are stepping up orders, he said.
Last month Caterpillar, Komatsu’s biggest competitor, was also upbeat on emerging markets and said it was struggling to meet a backlog of orders in China, where it sees its sales doubling to $4 billion by 2010 from about $2 billion this year.
Originally published by Reuters.
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