Komatsu Expects $550 Million Tariff-Hit to Profits This Year

Komatsu Ltd., the world’s second-largest supplier of construction and mining equipment, expects US tariffs will inflict a $550 million dent to its profits this fiscal year, even after Washington reduced Japan’s levy rate.

The demand outlook in some of its key markets — including North America, Australia and Japan — has deteriorated, Chief Financial Officer Takeshi Horikoshi told Bloomberg TV on Thursday. In April, the company said it would need to hike up prices to mitigate the impact of tariffs on its bottom line.