The aerospace units of Japanese bellwethers IHI and Mitsubishi Heavy Industries have posted stronger first quarter revenues.
For the fiscal first quarter ended 30 June, conglomerates IHI and MHI said that continued weakness with the Japanese Yen gave a boost to aerospace earnings.
At IHI, the Aero Engine, Space, and Defense division saw revenues climb 27.9% to Y100 billion, according to the company’s quarterly results.
Revenue for civil aero engines was particularly strong, jumping 52% to Y77.7 billion.
The company attributed the strength to sales of new engines as well as strong spare parts demand for existing ones.
The unit’s operating profits for the quarter more than doubled to Y23.8 billion.
IHI has workshare on engines such as the GE Aerospace CF34, GE90, GEnx and Passport 20, the International Aero Engines V2500 and the Pratt & Whitney PW1100G.
Regarding maintenance challenges with the PW1100G, which have badly affected the world’s Airbus A320neo family fleet, IHI says that it continues to work with partners to expand maintenance capacity and reduce the number of grounded aircraft.
Looking forward, IHI sees aero engine demand to continue driving profitability during the year.
The first quarter also saw IHI start shipping integrally bladed rotors to Pratt & Whitney for the F135 engine, the powerplant for the Lockheed Martin F-35 fighter. The work falls under IHI’s efforts to gain more exposure to the global defence sector.
For the first quarter, IHI’s aerospace work accounted for 29% of the broader group’s overall revenue of Y346 billion, compared with 26% a year earlier. IHI’s other businesses include energy, infrastructure, and industrial systems.
Meanwhile, the Aircraft, Defense & Space division of MHI also enjoyed a strong first quarter to 30 June, with revenues rising 66% to Y212 billion.
Operating profits at the unit rose 14.3% to Y23.6 billion.
As with IHI, MHI enjoyed strong demand for engine spare parts, as well as revenue growth from its engine MRO business.
MHI also forecasts continued strength in its aero engine business.
During the quarter, MHI’s Aircraft, Defense & Space unit accounted for 19% of MHI’s overall revenue. The company is also involved in energy systems, infrastructure, and other areas.
Story corrected on 7 August to note that GE produces Passport 20s.
