IHI Expects Lower Profit amid Inspection Scandal

Economy

Tokyo, May 8 (Jiji Press)--IHI Corp. <7013> said Wednesday that its consolidated net profit is projected to fall in the year ending in March 2020, mainly due to the effects of the company's misconduct in its airplane engine maintenance business.

The Japanese heavy machinery maker expects its net profit to drop 12.3 pct from the previous year to 35 billion yen. Sales are projected to drop 5.6 pct to 1.4 trillion yen.

The company halted operations at a related plant after improper inspections of aircraft engine parts were found in January this year.

"We'll thoroughly strengthen our systems for legal compliance and quality assurance," IHI President and Chief Executive Officer Tsugio Mitsuoka told a press briefing.

For the year ended last March, IHI's net profit surged five-fold from a year earlier to 39,889 million yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press