April 23 2007.

Kawasaki Heavy Industries Ltd. said Friday that it expects consolidated net profit to surge 80% on the year to 29.7 billion yen for the year ended March 31, a record for the first time in 10 years.

This exceeds the heavy machinery manufacturer's earlier projection by 3.7 billion yen.

Overall sales are believed to have risen 9% to 1.43 trillion yen. The firm's mainline rolling stock business fared well, with subway car sales growing in the U.S. Construction machinery sales were also brisk.

Shipments of robots used in automobile plants and chip foundries rose on the back of increased capital investment by corporations. In addition, there was growth in sales of gas turbines for power generation systems used in factories and hospitals, helping to offset Kawasaki Heavy's sluggish performance in motorcycles due to a delay in developing new products.

The firm said it expects to log a 65% jump in operating profit to 69.1 billion yen and a 59% increase in pretax profit to 49 billion yen. The shipbuilding segment is believed to have posted another operating loss, but the earnings structure of the company as a whole improved on the growth of subway cars and other profitable products.

The weaker-than-projected yen also helped Kawasaki Heavy's bottom line.

Source: The Nikkei Saturday morning edition.