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Komatsu Shares Hit Record High on Unexpected Buyback Plan

By Ronnie Harui


Komatsu Ltd.'s shares rose sharply to a record high after the company unveiled an unexpected plan to buy back its common shares and reported better-than-expected net profit.

Shares were recently 10.1% higher at 4,693 yen ($30.02) in Tokyo on Tuesday, following a Japanese public holiday on Monday. The shares earlier rose as high as Y4,725, an all-time high based on data from Quick.

The Japanese construction machinery manufacturer said in a filing with the Tokyo Stock Exchange last Friday that it intends buy back up to 33 million common shares for a maximum amount of Y100 billion, starting today through Sept. 30.

In a separate filing, Komatsu said its net profit for the fiscal year that ended March 31 jumped 20.5% on year to Y393.43 billion, beating the Y389.15 billion expected in a poll of analysts by FactSet. Its revenue rose 9.1% on year to Y3.865 trillion.

Komatsu's announcement of a Y100-billion buyback is a positive surprise, said Citi Research analyst Graeme McDonald in a recent research report. The company's earnings for the fourth quarter of the fiscal year that ended March 31 were also solid, the analyst added.


Write to Ronnie Harui at


(END) Dow Jones Newswires

April 29, 2024 22:57 ET (02:57 GMT)

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