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.
