Earthmoving equipment manufacturer Komatsu last week said it expects sales of excavators and other earth-moving machines to drop 20 percent in its fiscal year beginning in April, with demand dropping globally with the possible exception of China.

The Japan-based manufacturer, the world’s second largest, expects to post about $20 billion in sales in its fiscal year ending March 31.

Komatsu recently cut its profit forecast for the current fiscal year by 42 percent, as well as a fourth quarter loss. It plans to cut production significantly.