KAWASAKI PROFIT FALLS 64%
April 11 2009.

Kawasaki Heavy Industries is expected to generate a group pretax profit of some 10 billion yen for the year ending March 2010, down 64% from the fiscal 2008 estimate of 28 billion yen, partly on sagging foreign sales of large motorcycles.

Fiscal 2009 dividend plans will likely remain undetermined for now. The company does intend to pay 3 yen for fiscal 2008, down 2 yen on the year.

Sales are seen edging down to about 1.2 trillion yen to 1.3 trillion yen in fiscal 2009 from the 1.33 trillion yen estimated for fiscal 2008. Operating profit will likely fall 40% to around 10 billion yen.

In the consumer products segment, sales of lucrative motorcycles, particularly those with engines of 1 liter or larger, are slipping in the U.S. and Europe.

Delayed production of Boeing Co.'s 787 Dreamliner jet will push back Kawasaki Heavy's deliveries of parts and engines, eroding the Japanese firm's profitability.

New orders will likely be hard to come by for the shipbuilding business. But thanks to foreign exchange contracts and falling steel materials prices, the segment is expected to swing to the black on an operating basis from last fiscal year's estimated 7 billion yen loss.


Source: The Nikkei