Komatsu has a lot of expectation from the year 2015

The slowdown of the global economy has put many big as well as small companies in the worry zone and many say it will perhaps take a couple of more years for them to see the glory days. So till then they have to do is to conduct business in the normal fashion without taking more risks. Taking risk at this juncture is only going to tarnish the reputation of the company because it is highly unlikely that you may get any high returns by taking unnecessary risks. Therefore, it is prudent that one carry on their businesses with caution as that will help them to conduct their business with impunity. Many big companies have seen a decline in their sales volume and they feel that the global slowdown is the major reason why they have such a low sales figure. Other than this, businesses in some countries have taken the major hit which has impacted the overall sales figure. Many are even pondering if it will be wise enough to wrap up their businesses in countries where they have suffered maximum losses. That will in a way help them cut off some of their losses in the future. They may also consider to lay off few employees for the time being as that will be a way in which they can save some money for taking major financial decisions.

China which has lately emerged as the world leader as far as its economy is concerned has also seen a fall in the construction and mining sector. Komatsu which is one of the largest producers of heavy equipment feels that China is no longer the market leader. Their sales of equipment in China have fallen drastically than they could have ever thought of giving them a shock of their lifetime. Companies like CAT have similar views. Tetsuji Ohashi, the chief Executive Officer of Komatsu, has said in an interview that China is losing its sheen as far as the construction and mining sector is concerned. He even went on to say that China is losing its hold from the economic growth and it is finally scaling down. The sale of Komatsu equipment has dropped noticeably between April and May and there has high chances that it will miss the annual sales target. He also felt that China is experiencing huge delays in the commencement of some construction projects. Alternatively, he also feels that the demand for mining machinery is also declining. This all attributes to the total mess that is happening in that country affecting the business of the company.

He feels that the impact of the situation in China is big and they have to closely monitor the situation before coming down to a conclusion. They just can’t take a decision without forecasting few very important aspects and are optimistic that things will get back to normal in that country. Komatsu sales have declined to almost 20 percent but they have high hopes for 2015. They feel that the year 2015 will at least heal some of their wounds if not turn the table for them.