Mitsubishi Heavy Industries Ltd. reported Friday a consolidated net loss of 20.35 billion yen for the 2000 business year, falling into the red for the second consecutive year.
This was smaller than the 137.01 billion yen loss the previous year. Group net loss per share was 6.03 yen, compared with 40.62 yen the previous year.
Japan’s biggest heavy machinery manufacturer blamed the result on evaluation losses on securities holdings and a loss on its investment in Mitsubishi Motors Corp., which reported a record 278.14 billion yen consolidated net loss for the same year ending March 31.
MHI has a stake of about 23 percent in the ailing automaker.
The company also cited increased reserves against possible loan losses and mandated outlays for retirement allowances and pension reserves as other reasons for the net loss.
Group sales amounted to 3.045 trillion yen, up 5.9 percent, helped by a 12.4 percent increase in orders.
Sales were particularly brisk in the power system, aerospace, shipbuilding and ocean development sectors.
This growth as well as cost-cutting efforts helped the company register a consolidated pretax profit of 63.23 billion yen, a turnaround from a 89.52 billion yen loss the previous year.
MHI reported an unconsolidated pretax profit of 46.52 billion yen and net profit of 15.09 billion yen, entering the black for the first time in two years, on sales of 2.638 trillion yen, up 7.5 percent.
It posted a pretax loss of 91.04 billion yen and a net loss of 126.59 billion yen on an unconsolidated basis the previous year.
MHI plans to pay an annual dividend of 4 yen per share for the year, up from 2.50 yen in 1999.
For the current business year, MHI projects a consolidated net profit of 20 billion yen and pretax profit of 70 billion yen on sales of 2.75 trillion yen.
Nippon Yusen surges
Nippon Yusen K.K., Japan’s top shipping company, said Friday its group net profit for the 2000 business year surged 125.1 percent to 35.56 billion yen, while group revenues rose 2.9 percent to 1.134 trillion yen.
Group net profit per share was 28.88 yen, up from 12.96 yen the previous year.
The company’s core marine transport business performed briskly despite higher oil prices and the U.S. economic slowdown.
Relatively stable economic conditions in Europe and Asia, as well as the company’s belt-tightening, more than offset the negative factors, it said.
Nippon Yusen’s group pretax profit for the same year rose 82.1 percent to 71.30 billion yen.
The company plans to pay a dividend of 7.5 yen for the year, up from 6 yen the previous year.
For this business year, Nippon Yusen forecasts a group net profit of 29 billion yen and a group pretax profit of 60 billion yen on revenues of 1.19 trillion yen.
On a parent-only basis, the company posted a net profit of 19.35 billion yen for the year that ended March 31, up 64.8 percent from the previous year.
It posted a pretax profit of 46.09 billion yen, up 38.9 percent, on revenues of 728.13 billion yen, which were up 6.5 percent.
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