/

Mining slump pinches 26% off Komatsu profits

Bloomberg

Komatsu Ltd., the world’s second-largest maker of construction equipment, cut its full-year profit forecast by 26 percent Monday after its commodity producing customers curtailed spending on new equipment.

Net income is estimated at ¥136 billion in the 12 months ending March 31, down from the ¥184 billion projected in July, Tokyo-based Komatsu said.

Slumping demand from mining companies in Latin America, Indonesia and Australia is overshadowing growth in Japan and a recovery in China, Komatsu said. The lower forecast follows a similar move by Caterpillar Inc., which last week cut its 2013 sales and profit outlook.

Caterpillar said on Oct. 23 that earnings will fall to about $5.50 a share on sales of $55 billion this year.

For the first half that ended Sept. 30, sales of construction and mining equipment in Asia outside Japan and China fell 30 percent to ¥91.9 billion, Komatsu said. Japan sales rose 13 percent to ¥150 billion, while China revenue gained 16 percent to ¥72.8 billion.