Asian slump sees Kobelco sales fall

Kobelco’s sales of excavators and cranes fell -4% in the first quarter of the fiscal year to JPY 86.1 billion (US$ 877 million) compared to the same period last year. Operating profits for the two divisions combined were almost unchanged at JPY 3.6 billion (US$ 37 million).

The results comprised a -6.9% fall in excavator sales by the Kobelco Construction Machinery division to JPY 74.6 billion (US$ 760 million). This was partly offset by a +21.1% increase in crane sales to JPY 11.5 billion (US$ 117 million). Profitability at Kobelco Cranes also saw a turnaround, with the division achieving a JPY 800 million (US$ 8.1 million) operating profit in the first quarter of the fiscal year, compared to a JPY 400 million (US$ 4.1 million) loss a year ago.

A statement from Kobelco said, “Unit sales of hydraulic excavators increased in Japan on the back of reconstruction demand from the Great East Japan Earthquake, However, demand went down in China as conditions did not improve and demand also declined in Southeast Asia.”

It added that crane sales were up in Japan and Southeast Asia over the same period, but that the European market was down.