Komatsu Suffers from Drastically Reduced Chinese Demand

January 29, 2016

Komatsu Ltd., the world's second-biggest maker of construction and mining equipment, reports its profit was almost unchanged in the third quarter as slowing economic growth in China and the collapse of commodity prices extended the slide in sales to mining companies and builders.

Komatsu reports that for the nine-month period of April 1 - December 31, 2015 of the fiscal year ending March 31, 2016, sales in China were down almost 40 percent. “Economic measures to underpin the economy, such as monetary easing, of the Chinese government fell short of bringing about clear outcomes from sluggish demand for construction equipment," Komatsu said.

Komatsu said it made no change in the projection of April 27, 2015, concerning consolidated business results for the fiscal year ending March 31, 2016.

Source: Komatsu; Nasdaq