Heavy Equipment Industry Analysis
Term Topic Paper
9/7/2012
The two companies I chose to analyze thoroughly for my term paper both operate in the Heavy Equipment industry. The firms are Japanese based Komatsu Ltd. and the American headquartered company Terex. Komatsu Ltd. headquarters are located in Tokyo, Japan while, Terex has their headquarters in Westport, Connecticut. Komatsu Ltd. is traded on the Tokyo Stock Exchange under the ticker symbol (KMTUY) while Terex is traded on the New York Stock Exchange under the ticker symbol (TEX). Komatsu is Japans largest heavy equipment company and the world’s second leading construction equipment maker, trailing only industry frontrunner Caterpillar. Komatsu manufactures and distributes a variety of products such as construction and mining equipment, utilities, forest machines and industrial machinery. The majority of the manufacturing for Komatsu occurs at plants located in Japan, the United States, Brazil, the United Kingdom, Germany, Sweden, Italy, Indonesia, China, Thailand and India. Komatsu does business all over the globe, most notably in Asia and Oceania where over a quarter of their sales take place. The majority of their other sales are as follows; 16% in Japan, 14% North America, and 12% of sales occur in both China and Latin America. The majority of Komatsu’s sales and services are conducted by their sales subsidiaries and independent distributors. Komatsu’s products are sold under the self-titled brand name Komatsu. (Minato-ku, 2012) The financial information for Komatsu is as follows, net sales have increased in consecutive years climbing to ¥1.8 trillion after falling below ¥1.5 trillion in the fiscal year 2009. Komatsu’s net income has also been trending in a positive matter since 2009 but has not yet reached the 5 year high of ’07 when net income was over ¥2 trillion. In 2011 the company saw ¥1.8 trillion of revenue. Komatsu generated ¥151 billion in net income from this revenue. (Komatsu, 2011) Komatsu has been using innovative
9/7/2012
The two companies I chose to analyze thoroughly for my term paper both operate in the Heavy Equipment industry. The firms are Japanese based Komatsu Ltd. and the American headquartered company Terex. Komatsu Ltd. headquarters are located in Tokyo, Japan while, Terex has their headquarters in Westport, Connecticut. Komatsu Ltd. is traded on the Tokyo Stock Exchange under the ticker symbol (KMTUY) while Terex is traded on the New York Stock Exchange under the ticker symbol (TEX). Komatsu is Japans largest heavy equipment company and the world’s second leading construction equipment maker, trailing only industry frontrunner Caterpillar. Komatsu manufactures and distributes a variety of products such as construction and mining equipment, utilities, forest machines and industrial machinery. The majority of the manufacturing for Komatsu occurs at plants located in Japan, the United States, Brazil, the United Kingdom, Germany, Sweden, Italy, Indonesia, China, Thailand and India. Komatsu does business all over the globe, most notably in Asia and Oceania where over a quarter of their sales take place. The majority of their other sales are as follows; 16% in Japan, 14% North America, and 12% of sales occur in both China and Latin America. The majority of Komatsu’s sales and services are conducted by their sales subsidiaries and independent distributors. Komatsu’s products are sold under the self-titled brand name Komatsu. (Minato-ku, 2012) The financial information for Komatsu is as follows, net sales have increased in consecutive years climbing to ¥1.8 trillion after falling below ¥1.5 trillion in the fiscal year 2009. Komatsu’s net income has also been trending in a positive matter since 2009 but has not yet reached the 5 year high of ’07 when net income was over ¥2 trillion. In 2011 the company saw ¥1.8 trillion of revenue. Komatsu generated ¥151 billion in net income from this revenue. (Komatsu, 2011) Komatsu has been using innovative
Bibliography: Center, R. (2009). Construction Machinery and Equipment. Hall, K. (2009, Oct 1). How Komatsu Innovations Keep its Machinery Selling. Business Week. (2011). Komatsu to launch the 1st Hybrid Hydraulic Excavator in Singapore . Singapore: Komatsu. Komatsu. (2011). Annual Report. Tokyo: Komatsu Ltd. Terex Accelerates Focus on Developing Markets. (2012). International Rental News . (2011). Terex Annual Report. Wesport: Terex.