Mitsubishi Heavy May Book Impairment Losses of Up to 70 B. Yen
Tokyo, May 7 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> said Thursday it expects to book impairment losses of about 50 billion to 70 billion yen in fiscal 2020, which ends next March, over its acquisition of Canadian aircraft maker Bombardier Inc.'s small passenger jet business.
In June 2019, Mitsubishi Heavy decided to acquire the Bombardier division to strengthen its maintenance service after the delivery of the SpaceJet small passenger jet, being developed by the major Japanese heavy machinery maker.
Mitsubishi Heavy is set to dispose of losses related to a delay in the delivery of the SpaceJet, formerly called the Mitsubishi Regional Jet.
Of the goodwill from the acquisition, the full amount related to the SpaceJet business will be written down, according to the company.
[Copyright The Jiji Press, Ltd.]