Mitsubishi Heavy Posts Largest Quarterly Loss in April-June

Economy

Tokyo, Aug. 3 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> on Monday reported a consolidated net loss of 57,902 million yen for April-June, marking its biggest such loss on a quarterly basis.

The result compared with the 16,372-million-yen net profit in the same period of last year. The firm’s earnings are based on international standards.

The red ink in the first quarter of fiscal 2020 reflects the sluggish performance of its commercial aircraft division due to the novel coronavirus pandemic, as well as a loss of 68.8 billion yen from its SpaceJet small passenger aircraft project.

The Japanese firm plans to halve the scale of the SpaceJet project, which has suffered delays in development. Development spending will be reduced to some 60 billion yen per year, while the number of staff employees involved in the project was cut by a total of around 1,000 at home and abroad.

Consolidated sales in April-June stood at 778,009 million yen, down 15.4 pct year on year, because the auto parts division also performed poorly.

[Copyright The Jiji Press, Ltd.]

Jiji Press