Hitachi Construction Machinery Co. needs three more months to shed excess inventory after demand fell more than anticipated.
"We have said we aimed to complete inventory adjustments in June with adjustments in some regions possibly dragging out until September," Chief Executive Officer Michijiro Kikawa said. "Now, it's more likely that it will take until September for adjustments in all our markets."
Stockpiles of excavators totaled 8,200 units as of the end of April, exceeding the company's target of 7,800, Kikawa said. The company's largest factory in Tsuchiura, Ibaraki Prefecture, has reduced operations of its assembly line to five days a month from the usual 20 days.