Japan

Sales declined from the previous fiscal year, affected by reduced demand for new emission controls-compliant construction equipment having run its course, especially in the rental industry.

Americas

In North America, while demand was slack in the rental industry, that for construction equipment remained steady in the United States, resulting in an increase of sales, on a local currency basis, from the previous fiscal year. However, as the Japanese yen appreciated, sales decreased year-on-year.

In Latin America, demand for construction and mining equipment was sluggish, mainly in Brazil. On the other hand, sales improved from the previous fiscal year on a local currency basis, reflecting sales of super-large dump trucks to major mines as well as the new addition of a distributor, we acquired in Mexico in FY2015, into consolidated accounting. However, sales declined from the previous fiscal year, adversely affected by the Japanese yen's appreciation.

Europe and CIS

In Europe, demand was firm for construction equipment, centering on Germany, a major market of the region. We added Lehnhoff Hartstahl GmbH, a German manufacturer of attachments, which we acquired in FY2015, to consolidated business results. As a result, sales increased, on a local currency basis, but decreased from the previous fiscal year, as adversely affected by the Japanese yen's appreciation. In CIS, sales expanded sharply from the previous fiscal year, driven by a continued increase in demand for mining equipment, centering on gold mines.

China

Sales advanced sharply from the previous fiscal year. This was supported by continued expansion of demand for construction equipment resulting from the progress of infrastructure development nationwide.

Asia and Oceania

In Asia, infrastructure investment remained brisk in Thailand and demand for mining equipment increased in Indonesia, the largest market of the region, in tandem with the growing price of coal. As a result, sales improved from the previous fiscal year, even while the Japanese yen appreciated.

In Oceania, we steadfastly captured the market needs for parts and services of mining equipment. As a result, sales increased from the previous fiscal year, on a local currency basis, but declined as adversely affected by the Japanese yen’s appreciation.

Middle East and Africa

In the Middle East, sales decreased drastically from the previous fiscal year. This was mainly due to a decline in demand for construction equipment in Gulf nations, where the governments reduced their budgets against lowered crude prices.

In Africa, sales declined from the previous fiscal year, affected by a drop in demand for mining equipment in South Africa, the major market of the region.