Tokyo-based Mitsubishi Heavy Industries (MHI) saw a hike in its shipbuilding generated profit for the first quarter of the 2016 financial year which covered the three months from April to June 2015.
The company’s commercial aviation and transportation systems unit, including shipbuilding, posted a 16.7% y/y increase in operating income totaling JPY 22.8 billion (USD 184.38 million).
MHI said that its operating income increased as a result of cost improvements relevant to commercial aircraft, improvement in the product mix of commercial ships, and merits from the weaker yen.
In addition, MHI explained that increased demand for LNG carriers drove the jump in its commercial ship orders.
The company’s backlog of ship orders for the quarter amounted to 38 units, those being 10 LNG carriers, 7 LPG carriers, 3 ferries/passenger and cargo ships, 6 patrol vessels and others.
Mitsubishi raised its full-year earnings forecast for its shipbuilding unit amid stronger sale results in which recorded a JPY 31 billion increase. Hence, the forecast was shifted from JPY30 billion to JPY45 billion.
Overall, for the fiscal year 2015 ending March 31, 2016, MHI is expecting JPY 4,200 billion yen in net sales, JPY 320 billion in operating income, JPY 300 billion in ordinary income, and JPY 130 billion in profit attributable to owners of parent.
On a separate note, MHI said that it has concluded an absorption-type split agreement announced in February.
Under the deal, MHI decided to spin off its ship construction business to a group company, MHI Ship & Ocean Engineering Co., Ltd. and to establish a company dedicated to the manufacture of hull blocks, with plans calling for the creation of a wholly owned preparatory company to be followed by an absorption-type split.
World Maritime News Staff