Sales at Kobelco’s construction machinery division drop 16.8%

2 August 2016 by Sotiris Kanaris

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Kobelco’s construction machinery division, specialised on excavators and cranes, has reported a decrease in sales of 16.8% year-on-year to ¥‎71.4bn in the 3 months ended June 30 (FY2016Q1).

Kobelco highlighted the drop in sales of crawler cranes compared to the same period in 2015 caused by a drop in demand in Southeast Asia.

The division has recorded pre-tax loss of ¥4bn‎ compared to pre-tex profit of ¥‎2.3bn in FY2015Q1.

Apart from the decline in sales, the company attributed the pre-tax loss to the high yen and an increase in allowance for doubtful accounts.

Following these results and taking into account economic conditions and currency effects, the company has revised downwards its forecast for the full fiscal year. The company expects the sales revenue of its construction machinery division to stand at ¥‎315bn compared to the previous forecast of ¥‎335bn, while it anticipates pre-tax loss of ¥‎1bn.