Komatsu, leading construction machinery maker in Japan, has recorded 30.2 per cent a fall in net profits during the first six months of the year till September.

The profitability of the company was impacted mainly due to a weaker demand in China and a strong Japanese Yen. The company's net profit during the April-September quarter fell to 66.1 billion yen or US $ 831 million. The total operating profit fell 16.3 per cent to 111.3 billion yen while the sales fell 5.6 per cent to 930.8 billion yen.

"Sluggish demand for construction machinery in China and a drop in demand for products related to coal mines in Indonesia" led to a slide in sales, while the strong yen against the euro ate into profit," the company said.

Japanese firms are facing a wave of anti-Japanese sentiment in China due to the ongoing territorial dispute between the two countries. Total shipments to China of the company tumbled 14.1 per cent in September compared to the same month of the year earlier.

Komatsu has maintained its forecast for net profit for the while year at 157 billion yen. The company is expected to record a operating profit of 262 billion yen and sales of 1.97 trillion yen during the period.