Oct. 27 (Bloomberg) -- Komatsu Ltd., the world’s second- largest maker of construction and mining equipment, cut its full-year profit forecast by 7 percent as Chinese sales dropped and the yen’s appreciation curbed overseas earnings.
Profit will probably be 186 billion yen ($2.5 billion) for the financial year to March 2012, below its July 28 estimate of 200 billion yen, the Tokyo-based company said today in a statement. Second-quarter net income rose 18 percent to 39 billion yen.
Hitachi Construction Machinery Co., Komatsu’s closest domestic rival, said this week demand for excavators in China is expected to decline 20 percent in the current year to March 2012, more than its July estimate of a 3 percent decline.
Sales at Komatsu will probably be 2.05 trillion yen in the year to March 2012, 4.7 percent lower than its earlier estimate, Komatsu. Second-quarter sales rose 19 percent to 491.7 billion yen.
The Chinese economy grew 9.1 percent in the third quarter from a year earlier, the least since 2009.
--Editors: Aaron Sheldrick, Rebecca Keenan
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