Construction equipment maker Komatsu Ltd. expects spending on disaster reconstruction and prevention, as well as preparations for the 2020 Tokyo Olympic Games, to boost earnings in its home market.

The Abe administration approved a disaster-prevention bill last month as part of an election commitment by the Liberal Democratic Party.

While the bill doesn't yet have a funding figure attached to it, the LDP has proposed spending ¥200 trillion over 10 years on prevention, such as strengthening buildings and seawalls, after the 2011 earthquake and tsunami left 18,526 people dead or missing in the Tohoku region.