Company details fill in the picture on a long road back for Japanese economy

03/17/2011 1:11 pm EST


Jim Jubak

Founder and Editor,

We are starting to get specific reports from individual companies in Japan that fill in some of the details on how long any economic recovery will take.

Below I’ve reprinted a recent update from Komatsu (KMTUY), the Japanese maker of construction machinery. Note the company’s outreach to suppliers and their own difficulty in procuring parts and materials, and the long-term worry about the electrical power supply.

“With respect to our production plants in the concerned regions (Ibaraki, Oyama and Kooriyama plants and Komatsu Utility Co., Ltd.), nothing has changed in their conditions since our last news release. We are continuing inspection and repairs of facilities and equipment of these plants. While Komatsu Utility has resumed production, resuming overall production still remains indefinite. Concerning affected suppliers, we are supporting to their inspection of facilities and equipment and their recovery to normal production. ?Concerning other assembly plants (Awazu Plant in Ishikawa Prefecture and Osaka Plant in Osaka Prefecture) which were not directly affected by the earthquake, we are stopping production at some lines this week due to the following situations. We are continuing inspection and repairs at the Oyama Plant, our supply center of engines and hydraulic units. We are also experiencing some procurement difficulties in some parts and materials mainly due to effects of the earthquake as well as problems related to power supply and the nuclear power plant in Fukushima Prefecture.”

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund, may or may not now own positions in any stock mentioned in this post. The fund did own shares of Komatsu as of the end of January. For a full list of the stocks in the fund as of the end of January see the fund’s portfolio at

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