Mitsubishi Heavy’s Profit Dips

Japan’s Mitsubishi Heavy Industries (MHI) recorded a 31.2% dip in net profit for the fiscal year ended March 31, 2015, despite a notable increase in the received orders and net sales, according to the company’s consolidated financial results for the FY 2014.

MHI ended FY 2014 with a JPY 110.4 billion (USD 920.4 million) net profit, JPY 50 billion less than what the Tokyo-headquartered company had made a year before.

The net profit went down despite a 37.4% jump in received orders, with MHI’s backlog standing at JPY 4,699 billion for the period. Net sales increased by 19.2% to JPY 3,992 billion.

MHI’s Transportation Systems sector recorded JPY 529.5 billion in net sales for the period, JPY 66 billion more compared to FY 2013. Net profit within this operational segment increased by JPY 5.1 billion, standing at JPY 23.4 billion.

Orders for commercial and navy ships rose from 8 ships ordered in FY 2013, to 11 ships in FY 2014.

MHI currently has 36 ships on order: 8 LNG carriers, 7 LPG carriers, 4 ferries/passengerand cargo ships, 6 patrol vessels and others.

”For the fiscal year 2015 ending March 31, 2016, MHI is expecting 4,200 billion yen in net sales, 320 billion yen in operating income, 300 billion yen in ordinary income, and 130 billion yen in profit attributable to owners of parent,” MHI said in the statement.

World Maritime News Staff