UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

KOMATSU LTD.

Address of principal executive office

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ      Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o      No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

 

 

INFORMATION TO BE INCLUDED IN REPORT

1.

Three company announcements made on October 28, 2010.

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.
Corporate Communications Dept.
Tel: +81-(0)3-5561-2616
Date: October 28, 2010
URL: http://www.komatsu.com/

Consolidated Business Results for Six Months of the Fiscal Year Ending
March 31, 2011 (U.S. GAAP)

1. Results for Six Months Ended September 30, 2010

(Amounts are rounded to the nearest million yen)

(1) Consolidated Financial Highlights

		Millions of yen except per share amounts
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Net sales			859,763				645,963				213,800				33.1	%
Operating income			103,912				19,785				84,127				425.2	%
Income before income taxes and equity in earnings of affiliated companies			100,111				18,452				81,659				442.5	%
Net income attributable to Komatsu Ltd.			63,764				8,198				55,566				677.8	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			65.89				8.47				57.42
Diluted			65.85				8.47				57.38

(2) Consolidated Financial Position

		Millions of yen except per share amounts
		As of September 30, 2010				As of March 31, 2010
Total assets			1,922,505				1,959,055
Total equity			886,239				876,799
Komatsu Ltd. shareholders’ equity			842,977				833,975
Komatsu Ltd. shareholders’ equity ratio			43.8	%			42.6	%
Komatsu Ltd. shareholders’ equity per share (Yen)			871.06				861.51

2. Dividends

(For the fiscal years ended March 31, 2010 and ending March 31, 2011)

		Yen
		The entire FY ending March 31, 2011								The entire FY ended
		Results				Projection				March 31, 2010
First quarter period
Second quarter period			18.00				—				8.00
Third quarter period
Year-end			—				18.00				8.00
Total							36.00				16.00

Note: Changes in the projected cash dividend as of October 28, 2010: Applicable

3. Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

		Millions of yen except per share amounts
		The full fiscal year
						Changes
Net sales			1,760,000				22.9	%
Operating income			200,000				198.4	%
Income before income taxes and equity in earnings of affiliated companies			192,000				195.5	%
Net income attributable to Komatsu Ltd.			120,000				257.6	%
Net income attributable to Komatsu Ltd. per share (basic) (Yen)			124.00

Note: Percentages shown above represent the rates of change compared with the corresponding periods a year ago.

4. Others

(1)		Changes in important subsidiaries during three months ended September 30, 2010: None
(2)		Use of simplified accounting procedures and adaptation of specific accounting procedures for the preparation of consolidated quarterly financial statements: None
(3)		Changes in accounting standards, procedures and presentations for the preparation of consolidated quarterly financial statements

	1)		Changes resulting from revisions in accounting standards, etc.: None
	2)		Change in other matters except for 1) above: None

(4)

Number of common shares outstanding

1)

The numbers of common shares issued (including treasury stock) were as follows:

As of September 30, 2010:		998,744,060 shares
As of March 31, 2010:		998,744,060 shares

2)

The numbers of shares of treasury were as follows:

As of September 30, 2010:		30,981,787 shares
As of March 31, 2010:		30,704,084 shares

3)

The weighted average numbers of common shares outstanding were as follows:

Six months ended September 30, 2010:		967,794,257 shares
Six months ended September 30, 2009:		967,972,490 shares

[Reference]

Results for Three Months Ended September 30, 2010

		Millions of yen except per share amounts
		Three months ended				Three months ended
		September 30, 2010				September 30, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Net sales			412,623				325,535				87,088				26.8	%
Operating income			49,837				11,512				38,325				332.9	%
Income before income taxes and equity in earnings of affiliated companies			50,007				9,724				40,283				414.3	%
Net income attributable to Komatsu Ltd.			33,067				3,435				29,632				862.6	%
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			34.17				3.55				30.62
Diluted			34.15				3.55				30.60

Appendix

Management Performance and Financial Conditions
(1) Outline of Operations and Business Results			P.4
(2) Financial Conditions			P.7
(3) Projections for the Fiscal Year Ending March 31, 2011			P.8
Financial Statements
(1) Condensed Consolidated Balance Sheets			P.10
(2) Condensed Consolidated Statements of Income			P.12
(3) Consolidated Statements of Equity			P.14
(4) Consolidated Statements of Cash Flows			P.15
(5) Note to the Going Concern Assumption			P.16
(6) Business Segment Information			P.16
(7) Note in Case of Notable Change(s) in the Amount of Shareholders’ Equity			P.17

Management Performance and Financial Conditions

(1) Outline of Operations and Business Results

Komatsu Ltd. (“Company”) and its consolidated subsidiaries (together “Komatsu”) launched the new three-year management plan, “Global Teamwork for Tomorrow” in April this year. Under this new mid-range management plan, Komatsu began concerting efforts on activities of importance, including 1) promotion of ICT applications to products and parts, 2) development of products for improved environmental friendliness and safety, 3) expansion of sales and service operations in Strategic Markets which include China, Asia and Latin America and 4) promotion of continuous Kaizen (improvement) by strengthening workplace capability.

During the first six-month period (April 1 — September 30, 2010) of the first fiscal year of the new three-year management plan, China and other emerging economies recovered soundly against the backdrop of positive effects from continuous economic stimulus packages of concerned governments. Demand for construction and mining equipment not only advanced in Strategic Markets but also turned for slow recovery in Traditional Markets of Japan, North America and Europe. Demand improved from the corresponding six-month period a year ago in all regions of the world. Demand for industrial machinery also headed for recovery in the first six-month period under review.

By capitalizing on these market growths, Komatsu increased consolidated net sales to JPY859.7 billion (USD10,235 million, at USD1=JPY84) for the first six-month period, up 33.1% over the corresponding period a year ago. While the Japanese currency appreciated sharply against the U.S. dollar and Euro and Renminbi, Komatsu worked to improve productivity in addition to expanding sales. As a result, operating income advanced by 425.2% to JPY103.9 billion (USD1,237 million) for the six-month period. Operating income ratio improved to 12.1%, up 9 percentage points from the corresponding period a year ago. Income before income taxes and equity in earnings of affiliated companies advanced to JPY100.1 billion (USD1,192 million), up 442.5%. Net income attributable to Komatsu Ltd. totaled JPY63.7 billion (USD759 million), an increase of 677.8% from the previous first six-month period.

		Millions of yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
		USD1=JPY88				USD1=JPY95
		EUR1=JPY113				EUR1=JPY133
		RMB1=JPY13.0				RMB1=JPY13.9				Changes
		[A]				[B]				[(A-B)/B]
Net sales			859,763				645,963				33.1	%
Operating income			103,912				19,785				425.2	%
Income before income taxes and equity in earnings of affiliated companies			100,111				18,452				442.5	%
Net income attributable to Komatsu Ltd.			63,764				8,198				677.8	%

Business results by operation are described below.

Construction, Mining and Utility Equipment

Anticipating the mid- to long-range growth of Strategic Markets, Komatsu continued to expand production capacity and strengthen sales and product support capabilities during the six-month period under review. While demand remained at a high level, particularly in China, Asia and Latin America, demand made moderate recovery in Traditional Markets, namely, Japan, North America and Europe. By zooming in on demand recovery on a global scale, Komatsu expanded its first six-month sales by 34.1% over the previous first six-month period, to JPY763.6 billion (USD9,091 million).

[Sales of Construction, Mining and Utility Equipment by Region]

		Millions of yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009				Changes
		[A]				[B]				[A-B]				[(A-B)/B]
Japan			117,405				106,509				10,896				10.2	%
Americas			190,252				143,277				46,975				32.8	%
Europe & CIS			71,746				58,849				12,897				21.9	%
China			152,806				104,556				48,250				46.1	%
Asia* & Oceania			181,869				117,362				64,507				55.0	%
Middle East & Africa			49,567				39,052				10,515				26.9	%
Total			763,645				569,605				194,040				34.1	%

Japan

As public-sector investment was firm, resulting from the government’s economic measures, and private-sector investment was steady, demand for construction equipment turned for recovery, although it was moderate. Demand increased, centering on the rental equipment industry, and first six-month sales in Japan improved from the corresponding period a year ago.

Operating rates of Komatsu plants improved in Japan, especially those for key components such as engines and hydraulic equipment, as demand remained strong, particularly in Strategic Markets. Anticipating further growth in demand, Komatsu Castex Ltd., headquartered in Himi City, Toyama Prefecture, expanded its production capacity by opening a new plant for iron castings for engine parts.

Americas

In North America, economies fell short of full-momentum recovery and demand in the housing sector was sluggish. However, demand increased from the corresponding period a year ago, mainly as the utilization rates of construction equipment improved slowly but steadily, and the rental industry was able to normalize the level of its machine assets. In Latin America, demand in the mining industry accelerated in Chile, and demand remained strong in mining, civil engineering and agricultural sectors in Brazil, the largest Latin American market. In addition to these market recoveries, Komatsu strengthened its sales and product support activities. As a result, first six-month sales in the Americas improved from the corresponding period a year ago.

Europe & CIS

Demand stopped declining in Europe in the current fiscal year, and demand in western Europe, centering on Germany and the U.K. made moderate recovery. In addition to this market recovery, Komatsu worked to strengthen its product support capability and expand sales of parts by teaming up with its distributors. First six-month sales in Europe increased from the corresponding period a year ago. In CIS, demand for mining equipment advanced particularly for use in the development of natural resources. First six-month sales in CIS also grew from the previous first six-month period.

Against this backdrop, Komatsu Manufacturing Rus, LLC, which opened in June this year, is going to produce HD785 large dump trucks in the second half period of the fiscal year ending March 31, 2012 in order to capitalize on mid- to long-range demand for mining equipment in this resource-rich country. By expanding the product range for Komatsu Manufacturing Rus’ production, Komatsu will be better positioned to reduce logistics costs and inventory and further strengthen its product support operation.

China

Demand continued to increase in China, where urbanization advanced and infrastructure development projects continued under the leadership of the Chinese government. First six-month sales in China increased from the previous first six-month sales. As the development of open-pit mines is in good progress, Komatsu has received steady orders for mining equipment, including recent orders for 44 units of the 930E super large dump truck produced by Komatsu America Corp.

By anticipating stable market expansion into the future, Komatsu worked to reinforce production, sales and service operations. Specific measures included the plant relocation of Komatsu (Changzhou) Construction Machinery Corp., start-up preparations of Komatsu (Shandong) Cast Steel Co., Ltd., the establishment of Komatsu China Mining Limited to engage in sales and product support exclusively for large-scale mining companies, and preparations for the opening of the KC Techno Center.

Asia & Oceania

In Indonesia, the largest market of Southeast Asia, demand for mining equipment continued to expand, while demand remained strong in the civil engineering, agriculture and forestry sectors. Demand was also good in India, Thailand and Malaysia. In Australia, demand for mining equipment continued to grow. Under such market conditions, sales accelerated in Asia, and therefore, the first six-month sales in Asia & Oceania increased from the corresponding period a year ago. In Asia, Komatsu concerted efforts to introduce KOMTRAX-installed equipment to more regions. In Australia, Komatsu continued to reinforce sales and product support operations, including the reorganization of Komatsu Australia Pty Ltd in August 2010 with an eye to further strengthening its capabilities as a distributor.

Middle East & Africa

In addition to economies beginning to recover in both regions, commodities prices increased, although they were moderate, and therefore, demand was strong especially in the mining sector. As a result, first six-month sales in the Middle East & Africa improved from the corresponding period a year ago. Komatsu is expecting market expansion into the future to be accompanied by the development of new mines and the recovery of infrastructure development. Komatsu worked to reinforce its product support capability. For example, Komatsu established a training center jointly with a distributor in Kenya in April this year, following the training center opened in Senegal in the previous fiscal year.

Industrial Machinery and Others

In the industrial machinery and others business, Komatsu expanded sales of wire saws for use in slicing silicon ingots, as capital investment remained brisk in Asia, centering on China, for the solar cell market. As a result, first six-month sales advanced by 25.9% from the corresponding period a year ago, to JPY96.1 billion (USD1,144 million). In Strategic Markets such as China, India and Brazil, capital investment by the automobile manufacturing industry upturned for recovery, and Komatsu received more orders for large presses and other machinery.

Under such market conditions, Komatsu concerted efforts to further enhance the competitive strength of its industrial machinery business. Komatsu NTC Ltd. decided to build a new plant designed to expand its production capacity of wire saws and other machinery. In the press business, Komatsu Industries Corporation was reorganized to engage in the development, sales and service of all presses ranging from large to small capacities.

(2)

Financial Conditions

As of September 30, total assets had decreased by JPY36.5 billion from the previous fiscal year-end, to JPY1,922.5 billion (USD22,887 million), largely due to the Japanese yen’s appreciation against other major currencies. Interest-bearing debt decreased by JPY60.4 billion from the previous fiscal year-end, to JPY525.9 billion (USD6,261 million). Komatsu Ltd. shareholders’ equity increased by JPY9.0 billion from the previous fiscal year-end, to JPY842.9 billion (USD10,035 million). As a result, Komatsu Ltd. shareholders’ equity ratio increased by 1.2 percentage points from the previous fiscal year-end, to 43.8%. Net debt-to-equity ratio* was 0.52 compared to 0.60 as of the previous fiscal year-end.

For the first six-month period under review, net cash provided by operating activities increased by JPY15.3 billion from the corresponding period a year ago, to JPY102.8 billion (USD1,224 million), largely due to an increase in net income. Net cash used in investing activities decreased by JPY9.5 billion from the corresponding period a year ago, to JPY35.5 billion (USD423 million). Net cash used in financing activities increased by JPY16.0 billion from the corresponding period a year ago, to JPY54.2 billion (USD646 million), mainly due to repayments on short-term debt. As a result, cash and cash equivalents, as of September 30, 2010, totaled JPY90.6 billion (USD1,079 million), an increase of JPY8.2 billion from the previous fiscal year-end.

(3)

Projections for the Fiscal Year Ending March 31, 2011

(From April 1, 2010 to March 31, 2011)

In the construction, mining and utility equipment business, Komatsu can look forward to further improving productivity against the backdrop of expanding sales volume as market demand remains strong in regions. In the industrial machinery and others business, sales of wire saws have been accelerating, particularly since the start of the current fiscal year. So, although we are anticipating the negative factor of the Japanese currency appreciating against the U.S. dollar and Renminbi, we are expecting that both sales and profits will surpass the respective figures we projected in July 2010.

As preconditions for our current projections, we are assuming the foreign exchange rates in the third and fourth quarters to be as follows: USD1 = JPY82, EUR1 = JPY114 and RMB1 = JPY12.3.

		Millions of yen
		Earlier				Current												Results for
		projection				projection				Changes								FY ended
		[A]				[B]				[B-A]				[(B-A)/A]				March 31, 2010
Net sales			1,715,000				1,760,000				45,000				2.6	%			1,431,564
Operating income			179,000				200,000				21,000				11.7	%			67,035
Income before income taxes and equity in earnings of affiliated companies			171,000				192,000				21,000				12.3	%			64,979
Net income attributable to Komatsu Ltd.			105,000				120,000				15,000				14.3	%			33,559

[Reference]

Projections of the Company for the Fiscal Year Ending March 31, 2011

Similar to the revised projections for consolidated business results, the Company is projecting that net sales will outperform our projection of July 2010. With respect to profits, we are also estimating that they will surpass our projections. This estimate is supported by our improved productivity against the backdrop of expanding sales volume, which should cancel out the negative factor of the Japanese currency appreciation against the U.S. dollar.

		Millions of yen
		Earlier				Current												Results for
		projection				projection				Changes								FY ended
		[A]				[B]				[B-A]				[(B-A)/A]				March 31, 2010
Net sales			665,000				690,000				25,000				3.8	%			457,676
Operating profit			65,000				67,000				2,000				3.1	%			(26,829	)
Ordinary profit			72,000				74,000				2,000				2.8	%			(1,120	)
Net income			40,000				42,000				2,000				5.0	%			2,378

Cautionary Statement

The announcement set forth herein contains forward-looking statements which reflect management’s current views with respect to certain future events, including expected financial position, operating results, and business strategies. These statements can be identified by the use of terms such as “will,” “believes,” “should,” “projects” and similar terms and expressions that identify future events or expectations. Actual results may differ materially from those projected, and the events and results of such forward-looking assumptions cannot be assured. Factors that may cause actual results to differ materially from those predicted by such forward-looking statements include, but are not limited to, unanticipated changes in demand for Komatsu’s principal products, owing to changes in the economic conditions in Komatsu’s principal markets; changes in exchange rates or the impact of increased competition; unanticipated cost or delays encountered in achieving Komatsu’s objectives with respect to globalized product sourcing and new Information Technology tools; uncertainties as to the results of Komatsu’s research and development efforts and its ability to access and protect certain intellectual property rights; and, the impact of regulatory changes and accounting principles and practices.

Financial Statements

Assets

		Millions of yen
		As of September 30, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current assets
Cash and cash equivalents		¥	90,647							¥	82,429
Time deposits			595								1,132
Trade notes and accounts receivable			408,752								447,693
Inventories			412,891								396,416
Deferred income taxes and other current assets			124,412								112,451
Total current assets			1,037,297				54.0				1,040,121				53.1
Long-term trade receivables			161,007				8.4				150,972				7.7
Investments
Investments in and advances to affiliated companies			23,710								24,002
Investment securities			55,892								60,467
Other			2,678								2,399
Total investments			82,280				4.3				86,868				4.4
Property, plant and equipment
— Less accumulated depreciation			499,542				26.0				525,100				26.8
Goodwill			28,623				1.5				29,570				1.5
Other intangible assets			58,824				3.0				61,729				3.2
Deferred income taxes and other assets			54,932				2.8				64,695				3.3
Total		¥	1,922,505				100.0			¥	1,959,055				100.0

Liabilities and Equity

		Millions of yen
		As of September 30, 2010								As of March 31, 2010
						Ratio (%)								Ratio (%)
Current liabilities
Short-term debt		¥	84,137							¥	123,438
Current maturities of long-term debt			116,436								105,956
Trade notes, bills and accounts payable			248,449								207,024
Income taxes payable			14,910								22,004
Deferred income taxes and other current liabilities			170,638								183,324
Total current liabilities			634,570				33.0				641,746				32.7
Long-term liabilities
Long-term debt			325,354								356,985
Liability for pension and retirement benefits			43,339								46,354
Deferred income taxes and other liabilities			33,003								37,171
Total long-term liabilities			401,696				20.9				440,510				22.5
Total liabilities			1,036,266				53.9				1,082,256				55.2
Komatsu Ltd. shareholders’ equity
Common stock			67,870								67,870
Capital surplus			140,476								140,421
Retained earnings:
Appropriated for legal reserve			32,726								31,983
Unappropriated			779,362								724,090
Accumulated other comprehensive income (loss)			(142,174	)							(95,634	)
Treasury stock			(35,283	)							(34,755	)
Total Komatsu Ltd. shareholders’ equity			842,977				43.8				833,975				42.6
Noncontrolling interests			43,262				2.3				42,824				2.2
Total equity			886,239				46.1				876,799				44.8
Total		¥	1,922,505				100.0			¥	1,959,055				100.0

Six months ended September 30, 2010 and 2009

		Millions of yen except per share amounts
		Six months ended								Six months ended
		September 30, 2010								September 30, 2009
						Ratio								Ratio
						(%)								(%)
Net sales		¥	859,763				100.0			¥	645,963				100.0
Cost of sales			629,877				73.3				505,082				78.2
Selling, general and administrative expenses			124,750				14.5				119,483				18.5
Other operating income (expenses), net			(1,224	)			(0.1	)			(1,613	)			(0.2	)
Operating income			103,912				12.1				19,785				3.1
Other income (expenses), net			(3,801	)							(1,333	)
Interest and dividend income			2,329				0.3				3,965				0.6
Interest expense			(3,289	)			(0.4	)			(5,125	)			(0.8	)
Other, net			(2,841	)			(0.3	)			(173	)			(0.0	)
Income before income taxes and equity in earnings of affiliated companies			100,111				11.6				18,452				2.9
Income taxes			33,507				3.9				6,643				1.0
Income before equity in earnings of affiliated companies			66,604				7.7				11,809				1.8
Equity in earnings of affiliated companies			1,198				0.1				41				0.0
Net income			67,802				7.9				11,850				1.8
Less net income attributable to noncontrolling interests			(4,038	)			(0.5	)			(3,652	)			(0.6	)
Net income attributable to Komatsu Ltd.		¥	63,764				7.4			¥	8,198				1.3
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			65.89								8.47
Diluted			65.85								8.47

Three months ended September 30, 2010 and 2009

		Millions of yen except per share amounts
		Three months ended								Three months ended
		September 30, 2010								September 30, 2009
						Ratio								Ratio
						(%)								(%)
Net sales		¥	412,623				100.0			¥	325,535				100.0
Cost of sales			300,021				72.7				252,609				77.6
Selling, general and administrative expenses			61,803				15.0				59,997				18.4
Other operating income (expenses), net			(962	)			(0.2	)			(1,417	)			(0.4	)
Operating income			49,837				12.1				11,512				3.5
Other income (expenses), net			170								(1,788	)
Interest and dividend income			1,308				0.3				2,106				0.6
Interest expense			(1,620	)			(0.4	)			(2,394	)			(0.7	)
Other, net			482				0.1				(1,500	)			(0.5	)
Income before income taxes and equity in earnings of affiliated companies			50,007				12.1				9,724				3.0
Income taxes			16,041				3.9				4,462				1.4
Income before equity in earnings of affiliated companies			33,966				8.2				5,262				1.6
Equity in earnings of affiliated companies			557				0.1				142				0.0
Net income			34,523				8.4				5,404				1.7
Less net income attributable to noncontrolling interests			(1,456	)			(0.4	)			(1,969	)			(0.6	)
Net income attributable to Komatsu Ltd.		¥	33,067				8.0			¥	3,435				1.1
Net income attributable to Komatsu Ltd. per share (Yen)
Basic			34.17								3.55
Diluted			34.15								3.55

		Millions of yen
										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2010		¥	67,870			¥	140,421			¥	31,983			¥	724,090			¥	(95,634	)		¥	(34,755	)		¥	833,975			¥	42,824			¥	876,799
Cash dividends															(7,749	)											(7,749	)			(830	)			(8,579	)
Transfer to retained earnings appropriated for legal reserve											743				(743	)											—								—
Other changes																											—				317				317
Comprehensive income (loss)
Net income															63,764												63,764				4,038				67,802
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(44,877	)							(44,877	)			(3,087	)			(47,964	)
Net unrealized holding gains (losses) on securities available for sale																			(2,398	)							(2,398	)			—				(2,398	)
Pension liability adjustments																			77								77				—				77
Net unrealized holding gains (losses) on derivative instruments																			658								658				—				658
Comprehensive income (loss)																											17,224				951				18,175
Issuance and exercise of stock acquisition rights							55																				55								55
Purchase of treasury stock																							(551	)			(551	)							(551	)
Sales of treasury stock																							23				23								23
Balance at September 30, 2010		¥	67,870			¥	140,476			¥	32,726			¥	779,362			¥	(142,174	)		¥	(35,283	)		¥	842,977			¥	43,262			¥	886,239

Six months ended September 30, 2009

		Millions of yen
										Retained earnings								Accumulated								Total
										Appropriated								other								Komatsu Ltd.
		Common				Capital				for legal								comprehensive				Treasury				shareholders’				Noncontrolling
		stock				surplus				reserve				Unappropriated				income (loss)				stock				equity				interests				Total equity
Balance at March 31, 2009		¥	67,870			¥	140,092			¥	28,472			¥	719,222			¥	(105,744	)		¥	(34,971	)		¥	814,941			¥	33,393			¥	848,334
Cash dividends															(17,431	)											(17,431	)			(1,727	)			(19,158	)
Transfer to retained earnings appropriated for legal reserve											2,309				(2,309	)											—								—
Other changes																											—				1,514				1,514
Comprehensive income (loss)
Net income															8,198												8,198				3,652				11,850
Other comprehensive income (loss), for the period, net of tax
Foreign currency translation adjustments																			(10,953	)							(10,953	)			564				(10,389	)
Net unrealized holding gains (losses) on securities available for sale																			4,274								4,274				—				4,274
Pension liability adjustments																			1,782								1,782				—				1,782
Net unrealized holding gains (losses) on derivative instruments																			761								761				623				1,384
Comprehensive income (loss)																											4,062				4,839				8,901
Issuance and exercise of stock acquisition rights							103																				103								103
Purchase of treasury stock																							(15	)			(15	)							(15	)
Sales of treasury stock							(84	)															256				172								172
Balance at September 30, 2009		¥	67,870			¥	140,111			¥	30,781			¥	707,680			¥	(109,880	)		¥	(34,730	)		¥	801,832			¥	38,019			¥	839,851

		Millions of yen
		Six months ended				Six months ended
		September 30, 2010				September 30, 2009
Operating activities
Net income		¥	67,802			¥	11,850
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			43,432				44,427
Deferred income taxes			15,621				(8,845	)
Net loss (gain) from sale of investment securities and subsidiaries			90				(252	)
Net loss (gain) on sale of property			(1,160	)			(251	)
Loss on disposal of fixed assets			634				922
Pension and retirement benefits, net			(3,176	)			199
Changes in assets and liabilities:
Decrease (increase) in trade receivables			(11,005	)			21,396
Decrease (increase) in inventories			(42,960	)			69,679
Increase (decrease) in trade payables			47,870				(56,819	)
Increase (decrease) in income taxes payable			(6,067	)			(4,215	)
Other, net			(8,253	)			9,363
Net cash provided by (used in) operating activities			102,828				87,454
Investing activities
Capital expenditures			(42,482	)			(50,342	)
Proceeds from sale of property			5,637				7,519
Proceeds from sale of available for sale investment securities			22				74
Purchases of available for sale investment securities			(520	)			(3,505	)
Proceeds from sale of subsidiaries and equity investees, net of cash disposed			—				661
Acquisition of subsidiaries and equity investees, net of cash acquired			654				627
Collection of loan receivables			1,290				901
Disbursement of loan receivables			(576	)			(970	)
Decrease (increase) in time deposits			443				(52	)
Net cash provided by (used in) investing activities			(35,532	)			(45,087	)
Financing activities
Proceeds from long-term debt			31,266				88,685
Repayments on long-term debt			(24,059	)			(26,566	)
Increase (decrease) in short-term debt, net			(34,023	)			(61,988	)
Repayments of capital lease obligations			(18,791	)			(17,902	)
Sale (purchase) of treasury stock, net			10				157
Dividends paid			(7,749	)			(17,431	)
Other, net			(928	)			(3,199	)
Net cash provided by (used in) financing activities			(54,274	)			(38,244	)
Effect of exchange rate change on cash and cash equivalents			(4,804	)			(2,999	)
Net increase (decrease) in cash and cash equivalents			8,218				1,124
Cash and cash equivalents, beginning of year			82,429				90,563
Cash and cash equivalents, end of period		¥	90,647			¥	91,687

(5) Note to the Going Concern Assumption

None

(6) Business Segment Information

Six months ended September 30, 2010 and 2009

1) Operating Segments

(For the six months ended September 30, 2010)

		Millions of yen
		Construction, Mining and				Industrial
		Utility				Machinery								Corporate &
		Equipment				and Others				Subtotal				elimination				Total
Net sales:
Customers			763,645				96,118				859,763				—				859,763
Intersegment			991				5,431				6,422				(6,422	)			—
Total			764,636				101,549				866,185				(6,422	)			859,763
Segment profit			102,302				6,133				108,435				(3,299	)			105,136

(For the six months ended September 30, 2009)

		Millions of yen
		Construction, Mining and				Industrial
		Utility				Machinery								Corporate &
		Equipment				and Others				Subtotal				elimination				Total
Net sales:
Customers			569,605				76,358				645,963				—				645,963
Intersegment			1,417				8,331				9,748				(9,748	)			—
Total			571,022				84,689				655,711				(9,748	)			645,963
Segment profit			20,787				3,670				24,457				(3,059	)			21,398

Notes: 1)		Business categories and principal products & services included in each operating segment are as follows:

	a)		Construction, Mining and Utility Equipment
			Excavating equipment, loading equipment, grading & roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines & components, casting products and logistics
	b)		Industrial Machinery and Others
			Metal forging & stamping presses, sheet-metal machines, machine tools, defense systems, temperature-control equipment and others

2)

Transfers between segments are made at estimated arm’s-length prices.

2) Geographic Information

Net sales to customers recognized by sales destination for the six months ended September 30, 2010 and 2009 are as follows:

(For the six months ended September 30, 2010)

Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

163,119

196,587

72,138

186,127

192,186

49,606

859,763

(For the six months ended September 30, 2009)

Millions of yen

Europe &

Asia* &

Middle East

Japan

Americas

CIS

China

Oceania

& Africa

Total

Net sales to customers

150,732

152,325

62,222

117,739

123,784

39,161

645,963