July 30, 2020 / 6:27 AM / in 7 days

Japan's Komatsu expects 54% drop in 2021 profit amid falling demand

TOKYO, July 30 (Reuters) - Komatsu Ltd expects operating profit to plunge 54% for this financial year amid slumping global demand for its heavy machinery due the COVID-19 pandemic.

The company estimates to earn 115 billion yen ($1.09 billion) in the year to end-March 2021, compared with the average analyst estimate of 203.2 billion yen, according to Refinitiv data.

As the world’s second-largest maker of construction equipment, Komatsu is considered a bellwether for the broader economy and, in particular, growth in China.

Komatsu held off from making a full-year forecast when it reported results in May, citing uncertainties related to the COVID-19 pandemic.

$1 = 105.2600 yen Reporting by Rocky Swift; Editing by Krishna Chandra Eluri

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