Friday, November 1, 2013
M'bishi Heavy's 1st-Half Profit Soars 71% On Aircraft Parts
TOKYO (Nikkei)--Mitsubishi Heavy Industries Ltd. (7011) on Thursday posted a group net profit of 32.8 billion yen for the April-September period, up 71%, buoyed in part by higher sales of airplane parts to Boeing Co.
Overall sales rose 14% to 1.5 trillion yen, while operating profit surged 60% to 75.4 billion yen. R&D costs increased, but the weaker yen helped push profit up 29.6 billion yen.
The aerospace business scored the best improvement, with operating profit skyrocketing 27-fold to 18.7 billion yen. Shipments of fuselage components and main wings for the Boeing 777 and 787 jetliners increased, enhancing production efficiency.
Having sunk into the red a year earlier, the shipbuilding business returned to the black on an operating basis to the tune of 400 million yen. Construction volume decreased after containerships and patrol vessels were delivered, but the yen's depreciation helped the segment.
Meanwhile, the cash-cow prime mover segment saw its profit decline a year after a series of highly profitable deals for gas turbines used in fossil-fuel power plants. The segment also boosted capital investment, lifting production capacity in the U.S.
Orders, a leading indicator of earnings, jumped 56% to 1.56 trillion yen. The firm won orders for gas turbines to be used in highly efficient fossil-fuel power stations in Taiwan and Thailand.
Mitsubishi Heavy kept its full-year forecasts intact, anticipating a net profit of 100 billion yen, up 3%, on sales growth of 12% to 3.15 trillion yen. Prime movers, which generate half of consolidated profit, have been seeing improvement of late. The segment's operating profit target of a 7% rise to 95 billion yen is "within range," Executive Vice President Tatsuhiko Nojima says.
(The Nikkei, Nov. 1 morning edition)