Japan's Komatsu logs profit drop on weak China demand and strong yen
October 31, 2012, 12:45 pm TWN
TOKYO -- Japan's top construction machinery maker Komatsu said Tuesday its net profit dropped 30.2 percent in the first six months to September, citing weak demand in China and the yen's strength against the euro.
Komatsu's April-September net profit came to 66.1 billion yen (US$831 million). Operating profit fell 16.3 percent to 111.3 billion yen on a 5.6-percent decline in sales to 930.8 billion yen.
"Sluggish demand for construction machinery in China and a drop in demand for products related to coal mines in Indonesia" led to a slide in sales, while the strong yen against the euro ate into profit, it said.