01.10.2015

Kobe cuts forecasts

Kobe Steel, owner of Kobelco Cranes has cut its recent earnings forecasts by 58 percent due to lower sales of excavators in China during its second quarter.
The company also blames the fall on higher costs due to a major power outage at its Kakogawa steelworks.

The steel maker now forecasts net income of 25 billion yen ($209 million) for the full year to March 2016, more than 58 percent down on last year. It claims that excavator consumption in China has fallen 40 percent.

The profits warning makes no mention of any changes involving its crane division, the company had already made minor adjustments to its half and full year forecasts when it reported its first quarter results. Click here to see Profts slip at Kobelco Cranes