Kawasaki Heavy Falls into Red in April-Sept.

Economy

Tokyo, Oct. 31 (Jiji Press)--Kawasaki Heavy Industries Ltd. <7012> incurred a group net loss of 3.5 billion yen in April-September, suffering a fallback from a year-before profit of 10.8 billion yen due mainly to a sizable loss in its rail vehicle business.

The loss from the rail vehicle operations came to 8.5 billion yen, according to the company's earnings report for the first half of fiscal 2018 released Tuesday.

Kawasaki Heavy President Yoshinori Kanehana suggested that the company may consider forming a business alliance or withdrawing from the rail vehicle business if it sees no prospect for rebuilding the operations.

The dismal earnings came after a crack was found in December last year in the undercarriage of a Nozomi superexpress Shinkansen bullet train car manufactured by the company.

At a news conference, Kanehana said, "Our primary goal is to reconstruct the business with self-help efforts" through such measures as reinforcing quality management and ensuring profitability.

[Copyright The Jiji Press, Ltd.]

Jiji Press