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 ronnie.harui@wsj.com
(END) Dow Jones Newswires
04-29-24 2257ET