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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of September, 2000
COMMISSION FILE NUMBER: 1-7239
KOMATSU LTD.
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Translation of registrant's name into English
3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan
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Address of principal executive offices
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INFORMATION TO BE INCLUDED IN REPORT
1. One company announcement made on September 29, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
KOMATSU LTD.
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(Registrant)
Date: September 29, 2000 By: /s/ Masaru Fukase
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Masaru Fukase
Senior Executive
Officer
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News Release
September 29th, 2000
Komatsu Ltd.
Public Relations & Advertising Dept.
Phone: +81-3-5561-2616
TAKAMATSU CORPORATION
Planning and Development Dept.
Phone: +81-6-6303-8101
ON TRANSFER OF HOLDINGS IN KOMATSU CONSTRUCTION
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At the boards of directors' meeting held on September 29, 2000, TAKAMATSU
CORPORATION and Komatsu Ltd. decided to transfer the equity shares held by
Komatsu and the Komatsu Group in Komatsu Construction Ltd., a Komatsu's
subsidiary, to TAKAMATSU CORPORATION. The transfer will take place in the form
of Komatsu and the Komatsu Group complying with a takeover bid by TAKAMATSU
CORPORATION. As a result, Komatsu Construction will become a subsidiary of
TAKAMATSU CORPORATION and seek to strengthen and develop as a member of the
Takamatsu Construction group.
The construction industry in Japan is suffering from significantly
deteriorated earnings due to intensified competition brought about by sharply
reduced construction investments following the collapses of the bubble economy.
In addition, given fiscal deficits at both the national and municipal levels,
expansion of public works as an economic stimulus is seen to be difficult to
come by in future. Moreover, it is generally considered that on a long-range
basis, public spending will center on the repair and maintenance of
infrastructure, giving rise to an outlook for a further reduction of new
construction investments.
Against such a backdrop, industry-wide reorganization has become an
inevitable option for survival in the construction industry. Through the said
arrangement, TAKAMATSU CORPORATION and Komatsu Construction will strive to
expand their businesses in pursuit of improved profits by utilizing their
strengths in a complementary manner.
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As a result of the share transfer, consolidated net sales of the Takamatsu
Construction group will almost double to (YEN)100 billion or so. Operating
primarily in the Tokyo metropolitan area and the Osaka region, TAKAMATSU
CORPORATION has an abundant track record as a leading constructor of rental
apartment buildings. The acquisition of Komatsu Construction will enable the
company to deploy its business across Japan by capitalizing on the operating
network held by its new group member. In addition, further expansion of business
will become possible due to an increased customer base that will derive from
acquiring civil engineering capabilities within the group.
In the meantime, Komatsu Construction has been deploying its business,
focusing on unique civil engineering projects, such as marine civil engineering
and automated, unmanned works. From now on, the company is expected to
significantly improve its management efficiency through the introduction of
management know-how from TAKAMATSU CORPORATION, which has a strong earning
power. As a result, Komatsu Construction is expected to grow ahead on the back
of increased earning power and a stronger management foundation.
Komatsu, meanwhile, will deploy a variety of operations, ranging from its
core business of construction and mining equipment to electronics to
engineering. Through the transfer of shares, it will concentrate its management
resources on the mainstay business of construction and mining equipment, along
with other businesses where it can maintain technological edges. By putting
growth strategy into action, Komatsu will strive to increase the corporate value
of the Komatsu Group.
Outline of Komatsu Construction
-------------------------------
Name of Company: Komatsu Construction Ltd.
President: Katsumi Ohara
Location: 3-5-4, Shiba-koen, Minato-ku, Tokyo
Established: September 25, 1950
Line of Business: General civil engineering and construction
contracting, land preparation and sales.
Closing Day: March 31
No. of employees: 539 (as of March 31, 2000)
Main Establishments: Tokyo, Osaka, Sapporo, Sendai, Kanazawa,
Hiroshima, Fukuoka, Yokoyama, Nagoya, and
Kobe.
Capitalization: (YEN)1,808 million
Outstanding shares: 32 million shares
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Composition of Major Shareholders and Their Holding Ratios:
Komatsu 21,746,500 shares (67.95%)
KTC 1,183,000 shares (3.69%)
Financial Highlights:
Consolidated, years ended March 31, millions of yen except for per-share
profit and dividend.
----------------------------- ------------------- ----------------
1999 2000
----------------------------- ------------------- ----------------
Net Sales 68,400 63,020
----------------------------- ------------------- ----------------
Operating Profit 1,012 1,812
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Ordinary Profit 689 1,238
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Current Term Profit (Loss) (2,732) 85
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Total Assets 72,123 64,015
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Shareholders' Equity 3,428 4,791
----------------------------- ------------------- ----------------
Profit (Loss) per Share (126.49) 3.68
----------------------------- ------------------- ----------------
Dividend per Share 0 0
----------------------------- ------------------- ----------------
No. of Shares Transferred (Expected)
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20,800,000 shares by Komatsu alone.
(22,128,000 shares by 5 companies of the Komatsu Group.)
Holding Before and After the Transfer (Expected)
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<TABLE>
<CAPTION>
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TAKAMATSU CORP. Komatsu Ltd.
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<S> <C> <C>
No. of Shares Held Before Transfer --- 21,746,5000
(Holding ratio: 0%) (Holding ratio: 67.95%)
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No. of Shares Transferred 22,150,000 20,800,000
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Acquisition/Transfer Cost (YEN)2,879,500,000 ((YEN)130/share) (YEN)2,704,000,000 ((YEN)130/share)
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No. of Shares Held After Transfer 22,150,000 946,500
(Holding ratio: 69.21%) (Holding ratio: 2.95%)
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</TABLE>
Timetable
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September 29, 2000 Resolution of Board of Directors
October 2, 2000 Takeover bid to start
October 23, 2000 Takeover bid to finish
October 27, 2000 Date of share certificate transfer
Outlook: TAKAMATSU CORPORATION
------------------------------
As a result of the transfer of shares, Komatsu Construction will become our
subsidiary. In prior to this transfer, Komatsu Construction will receive
financial support from Komatsu Ltd., its parent company, which is designed to
solve its latent loss related to properties for sale. Komatsu Construction's
financial position should improve significantly.
After acquisition of the shares of Komatsu Construction, we will position
Komatsu Construction as a central unit of the TAKAMATSU Group, maintain its
listing on the First Section of the Tokyo Stock Exchange, and work to improve
its financial position. With respect to our business performance which does not
reflects this transfer of shares of Komatsu Construction, we are going to lower
our earlier forecast for the interim
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business results for the current fiscal year, on both non-consolidated and
consolidated bases, as indicated in the table below. The change incorporates
declined non-consolidated sales for the first half period resulting form
deferred completion of construction projects into the second half period.
However, the lowered forecast for the interim results will not adversely
affect full-year business results, because we will be able to make up for the
declined sales for the first half period in the second half period on both
non-consolidated and consolidated bases.
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Forecast of Business Results Prior to the Equity Transfer
<TABLE>
<CAPTION>
[Non-Consolidated] (Millions of Yen)
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(Interim) Sales Ordinary Profit Net Profit
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<S> <C> <C> <C>
Previous Forecast (May 16, 2000) (A) 11,400 (150) (250)
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Latest Forecast (B) 9,700 (750) (850)
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Amount of Change (B)-(A) (1,700) (600) (600)
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Rate of Change (%) (14.9) (400.0) (240.0)
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Previous Term's Results
(Interim Fiscal 2000, ended March 31) 9,452 *835 *800
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(Full Year) 45,700 4,700 2,400
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</TABLE>
<TABLE>
<CAPTION>
[Consolidated] (Millions of Yen)
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(Interim) Sales Ordinary Profit Net Profit
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<S> <C> <C> <C>
Previous Forecast (May 16, 2000) (A) 12,500 (100) (200)
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Latest Forecast (B) 10,800 (700) (800)
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Amount of Change (B)-(A) (1,700) (600) (600)
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Rate of Change (%) (13.6) (600.0) (300.0)
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(Full Year) 48,000 4,900 2,500
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</TABLE>
Note: *Profits for the previous non-consolidated interim period are expressed in
terms of interim adjusted accounting. (When the interim adjusted
accounting is not applied, ordinary loss would be \491 million for the
interim period, and net loss of \481 million.)
The table below shows forecast for our consolidated results with Komatsu
Construction as our subsidiary, which will be accounted into consolidation from
the second half period of fiscal year ending in March 2001.
Forecast of Consolidated Business Results with Komatsu Construction as
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Subsidiary Consolidated, years ended March 31, millions of yen.
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<TABLE>
<CAPTION>
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2001 2002
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<S> <C> <C> <C> <C>
Sales 90,000 (42,000) 114,000 (62,000)
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Ordinary Profit 6,100 (1,200) 6,700 (1,300)
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Net Profit 2,800 (300) 3,600 (700)
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</TABLE>
Notes: Figures in the parentheses include the effects of consolidation of
Komatsu Construction.
Outlook: Komatsu Ltd.
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The transfer of shares will generate a financial impact worth (YEN)10,488
million in connection with the finance support contract with Komatsu
Construction as stated below. However, due to the proceeds from the sales
of cross-held shares, it will not affect the non-consolidated business
results on neither the interim or full-year basis.
In the meantime, as for consolidated business results, forecasts for
the interim and full-year business results have been revised as stated in
the tables below because in
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addition to the effect peculiar to consolidated accounting, earnings in the
mining equipment market in North America are anticipated to worsen.
<TABLE>
<CAPTION>
[Interim] (From April 1, 2000 to March 31, 2001) (Millions of Yen)
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Sales Pre-tax Profit Net Profit
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<S> <C> <C> <C>
Previous Forecast (May 2, 2000) (A) 495,000 13,000 8,000
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Latest Forecast (B) 530,000 10,000 3,000
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Amount of Change (B)-(A) 35,000 (3,000) (5,000)
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Rate of Change (%) 7.0 (23.0) (62.5)
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Previous Term's Results
(Interim Fiscal 2000, ended March 31) 515,843 12,612 9,226
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</TABLE>
<TABLE>
<CAPTION>
[Full Year] (From April 1, 2000 to March 31, 2001) (Millions of Yen)
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Sales Pre-tax Profit Net Profit
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<S> <C> <C> <C>
Previous Forecast (May 2, 2000) (A) 1,050,000 28,000 15,000
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Latest Forecast (B) 1,070,000 22,000 8,000
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Amount of Change (B)-(A) 20,000 (6,000) (7,000)
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Rate of Change (%) 1.9 (21.4) (46.6)
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Previous Term's Results
(Year ended March 31, 2000) 1,055,654 19,395 13,395
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</TABLE>
Notes: As a result of converting the status of Komatsu Forklift Co., Ltd., as a
subsidiary as announced on June 14, 2000, Komatsu anticipated an
approximately (YEN)90 billion increase of its consolidated net sales,
to (YEN)1,140 billion for the current fiscal year.
Other Important Contracts
-------------------------
In transferring the shares, Komatsu reached an agreement with TAKAMATSU
CORPORATION regarding the improvement of Komatsu Construction's finances
and accordingly concluded a finance support contract with Komatsu
Construction. An outline of the support is as follows:
1) Komatsu will provide Komatsu Construction with capital funds amounting
to (YEN)10,488 million. Incidentally, the supply of funds was
implemented on September 29, 2000.
2) Komatsu will purchase some of the real estate holdings up for sale by
Komatsu Construction at the market price of (YEN)3,874 million.
3) Of the trades receivable of Komatsu Construction, Komatsu will
guarantee their collection at the maximum of (YEN)4,258 million.
4) As regards the two lawsuits (claims worth (YEN)429 million) which are
pending, Komatsu will bear the compensation should any payment
obligation be imposed on Komatsu Construction.
(end)
