Japan’s export-led recovery is in serious doubt as factory orders fell from September to October when they dropped 10.3 percent, the biggest slide since March 2008, the Cabinet Office said Wednesday.
It has been suggested that companies may scale back investment in plant and equipment despite capital spending rising in Q3 for the first time in more than three years.
Meanwhile Kobelco Cranes has released its half year results to the end of September with total revenues down 18 percent to 23.4 billion yen (£180 million), while operating income was down almost 86 percent and net income down 92.6 percent compared with the same period in 2009.
“The US and European markets have declined considerably and the worldwide market continues to be weak. Furthermore, the rise in the value of the yen has created a highly competitive environment,” said the company in statement.
The company recently entered a JV with Chengdu Kobelco Cranes in China and started Kobelco Cranes India which will start manufacturing in 2011 to protect its domination of the Indian market.
“Although there are both strong and weak regions, worldwide demand for cranes is anticipated to remain low in both the domestic and overseas markets and may even decline more,” the company said. “In addition, the future is still highly uncertain due to the further appreciation of the yen and users’ financial anxiety brought about by foreign currency exchange rates.”
