KAWASAKI Heavy Industries Ltd. (KHI) last year experienced a combination of group sales and net profit declines for the first time in five years.
KHI ended its business year March 31 with net sales of 1.338 trillion yen ($13.623 billion), down 10.8 percent from 1.501 trillion yen in the previous fiscal year. Net income was 11.728 billion yen ($119.357 million), down 66.6 percent from 35.141 billion yen.
The company operates seven business groups: Shipbuilding, Rolling Stock & Construction Machinery, Aerospace, Gas Turbines & Machinery, Plant & Infrastructure Engineering, Hydraulic Machinery and Consumer Products & Machinery.
KHI's Consumer Products & Machinery business — representing its powersports products — had sales of 340.497 billion yen ($3.465 billion), down from sales of 442.207 billion yen. The business had an operating loss of 10.143 billion yen ($103.227 million), down from operating income of 19.670 billion yen. The downturn in the Consumer Product & Machinery business was primarily due to decreased powersports vehicle sales in the U.S. and European markets as well as the yen's appreciation.
Kawasaki forecasts group sales to fall 7.3 percent to 1.24 trillion yen for the business year ending March 31, 2010. Net profit is projected to fall 48.8 percent to 6 billion yen.
—Submitted by Guido Ebert