Construction and mining equipment manufacturer Komatsu Ltd., which last week made a $2.89 billion offer for Joy Global Inc., said first-quarter profit fell 52 percent as demand languished in markets such as the Middle East and Indonesia and the stronger yen crimped overseas revenue.

Net income fell to ?15.6 billion for the three months ended June 30 from ?32.5 billion a year earlier, the Tokyo-based company said Thursday. Sales fell 13 percent to ?389.3 billion. The company reiterated that profit will likely fall by a third to ?92 billion for the financial year through March 2017.

Komatsu and its peers are suffering from a prolonged slump in China, where construction spending has weakened. Additionally, the company¡¯s global mining customers have scaled back activity amid a collapse in metals prices, while a stronger yen is providing another setback for Komatsu and domestic rival Hitachi Construction Machinery Co. by making their products less competitive abroad.

Sales to outside customers at Komatsu¡¯s construction, mining and utility equipment business fell 12 percent in the quarter, with a 16 percent decline in Latin America, a 47 percent drop in the Middle East and a 24 percent slide in Asia excluding Japan and China. Equipment sales were flat in China, while revenue from Japan dipped almost 12 percent.

While Komatsu last week signaled optimism for the mining outlook by announcing the acquisition of Joy Global, the largest independent maker of underground mining equipment, global equipment producers are expected to continue to face tough times at least in the short term.

Caterpillar Inc. this week lowered its forecast for 2016 sales and earnings for the second time in three months as demand for mining and energy equipment fails to rebound after a slow start to the year. Hitachi Construction, Japan¡¯s No. 2 producer, cut its full-year profit forecast on Wednesday by 38 percent following a first-quarter loss on the yen¡¯s appreciation.

Komatsu¡¯s chief financial officer, Mikio Fujitsuka, on June 27 that the yen¡¯s response in the wake of the Brexit vote was an overreaction and that the currency is unlikely to head back to previous highs above ?80.