The slowdown in growth is the result of high interest rates, which have been maintained in order to control inflation which exceeded 6% in July last year, well above the government targeted 4%. Japan's Komatsu Ltd., which is the second-largest maker of construction equipment in the world after Caterpillar, reported a 42% decline in its last quarter earnings on lower sales in China, forcing it to cut its profit outlook by 17%. Sany Heavy Industry Co. Ltd., China's largest construction equipment manufacturer, also lowered its sales forecast for 2012.