Kobe Steel’s construction equipment businesses, Kobelco Construction Machinery and Kobelco Cranes, had combined revenues of JPY 88.4 billion (US$ 715 million) for the first quarter of the fiscal year, ending June 30. This was a -9.9% fall on the same period last year. Combined ordinary income for the businesses was down -76.1% to JPY 2.2 billion (US$ 17.8 million).

Revenues for Kobleco Construction Machinery, which manufactures excavators, were down -13.4% to JPY 70.3 billion (US$ 568 million). The company said in a statement, “In Japan there was saturation in replacement demand. Unit sales overseas decreased, due to sluggish demand for infrastructure investments in China and other areas.”

Meanwhile, Kobelco cranes saw its sales rise +6.7% to JPY 18.1 billion (US$ 146 million) for the quarter, although ordinary income was down -41.6% to JPY 1 billion (US$ 8.1 million).

“Unit sales of crawler cranes were similar to the same period last year, owing to firm demand in Japan, North America, Asia and other areas… Due to increased expenses needed for sales promotion activities, ordinary income decreased JPY 0.7 billion, compared with the same period last year,” said a company statement.

Kobe Steel forecasts full-year revenues for the two divisions will come in at JPY 380 billion (US$ 3.07 billion) – JPY 300 billion (US$ 2.34 billion) for Kobelco Construction Machinery and JPY 80 billion (US$ 646 million) for Kobelco cranes. This be about equal with 2014 fiscal year results, although ordinary income is expected to come in some -42% lower at JPY 15 billion (US$ 121 million).

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