Mitsubishi Heavy Industries (MHI) has revised its earning guidance for its aircraft, defence and space unit, after it saw its order intake hit an all-time high on the back of government-led defence projects.
For the year to 31 March, MHI now forecasts an operating profit of Y60 billion ($404.5 million) for the unit, up from Y50 billion in earlier forecasts.
MHI made its revised forecast as it revealed a nine-month profit of Y53.6 billion for the unit, a 51% jump year on year.
Revenue for the period to 31 December 2023 rose about 22% year on year, led by an uptick in commercial aviation activities as markets recovered from the Covid-19 pandemic.
The defence systems business saw a five-fold increase in order intake for the period, as it booked several large projects from Japan’s defence ministry. The commercial aviation business, meanwhile, also saw an uptick in order intake and deliveries. During the October-December period, it delivered 23 shipsets across Boeing’s 777 and 787 programmes, up from 15 in the year-ago period.
Meanwhile, MHI’s aero-engines business saw a 39% rise in revenue to almost Y115 billion for the nine-month period, along with a 44% rise in order intake.
Still, the company states, ongoing technical issues with Pratt & Whitney’s PW1100G engine – a programme in which MHI is a partner – led to the booking of one-time expenses, which in turn led to a decrease in profitability. However, no profit figure was disclosed for the business, nor was the one-time cost quantified.
On 11 September, P&W parent RTX said that another 600-700 engines, which power the Airbus A320neo-family aircraft, must be removed and inspected between now and 2026 for defective high-pressure turbine and compressor discs.
