Komatsu, the world’s second-largest construction equipment maker, reported a down first quarter where profit plummeted 52 percent as sales slumped.
Profit fell to 15.5 billion yen ($151 million) while sales fell 13 percent to 389.2 billion yen ($3.8 billion).
Construction, mining and utility equipment sales fell 12 percent to 345.1 billion yen ($3.4 billion) while the segment’s profit fell 38 percent to 26.3 billion yen ($256 million).
Continued low demand from the mining industry and weaker demand from Chinese construction customers have cut into the company’s sales. Compounding these slumps is the strengthening of the Japanese Yen which cuts into the company’s ability to undercut its competitors’ pricing outside of Japan.
Looking forward to the rest of the fiscal year, which ends March 31, 2017, Komatsu expects profit to fall 33 percent from the previous year to 92 billion yen ($897 million) with sales falling 8 percent to 1.819 trillion yen ($18 billion).