Factory shipments of construction machinery will probably fall 22 percent next fiscal year as a deepening recession prompts builders to halt projects, an industry group said Friday.
Shipments of excavators, tractors, cranes and other machines used in construction and mining may fall to ¥1.65 trillion in the year to March 31, 2010, according to estimates released by the Japan Construction Equipment Manufacturers Association.
Komatsu Ltd. and Hitachi Construction Machinery Co., Asia's two largest makers of earthmovers, forecast fourth-quarter losses as they pare output to shed excess inventories. The financial crisis has spread to China and other emerging nations where the industry had expected sustained growth to mitigate plummeting sales to developed nations.
The association forecast domestic shipments may fall 20 percent to ¥500.6 billion next fiscal year. Exports may fall 24 percent to ¥1.15 trillion, it said.
For the year ending this March 31, shipments may fall 13 percent to ¥2.12 trillion, the association said.