Kawasaki enjoys strong fiscal year growth – June 5, 2006
June 5, 2006
Filed under Features
Kawasaki Heavy Industries Ltd. (KHI) net income for its fiscal year ended March 31 rose dramatically.
The company’s net income was Y16.467 billion ($140.2 million) or Y11.2 per share, up 43 percent from net income of Y11.479 billion or Y7.9 per share for the year-ended March 31, 2005.
Japan-based KHI does business in the following divisions: aerospace, consumer products and machinery, gas turbines and machinery, plant and infrastructure engineering, rolling stock, construction machinery and crushing, and shipbuilding.
The manufacturer said full-year consolidated sales were Y1.322 trillion ($11.258 billion), up 7 percent from sales of Y1.241 trillion for the previous fiscal year.
The consumer products and machinery division, of which powersports vehicles are a part, had full-year worldwide sales of Y373.7 billion ($3.2 billion) and operating income of Y19.9 billion ($169.4 million), an improvement from sales of Y343.5 billion and operating income of Y16.7 billion for the previous fiscal year.
KHI said full-year sales in North America totaled Y239.1 billion ($2.04 billion), with operating income of Y1.41 billion ($12 million), up from sales of Y212.1 billion and operating income of Y1.25 billion for the previous 12-month period.
KHI produced 245,117 motorcycles in Japan during the 12-month period from April 2005 through March, up from the production of 218,202 units during the previous 12-month period, according to Japan Automobile Manufacturers Association (JAMA). JAMA said Kawasaki exported 225,986 units for the year ended March 31, up from 194,881 units during the prior-year period.
For the year ending March 31, 2007, KHI forecasts consolidated net income of Y26 billion ($221.3 million) on total sales of Y1.390 trillion ($11.8 billion).
In a December 2005 message to shareholders, Kawasaki Heavy Industries Ltd. President Tadaharu Ohashi outlined the past year’s efforts and highlighted upcoming initiatives.
He said developments boosting profits last year included a weakening in the value of the yen, advances in the aerospace segment, improvement in the gas turbines and machinery segment, and “firm performance” of the consumer products and machinery segment.
For the current year, Ohashi said KHI plans to focus resources “especially on the aerospace and consumer products and machinery segments, which we have positioned as our core businesses.
“In the consumer products and machinery segment, we are working to enhance the value of the Kawasaki brand and substantially improve the competitiveness of our products.”