Mitsubishi Heavy Industries Achieves Significant Year-on-Year Growth

Mitsubishi Heavy Industries has reported a significant increase in order intake for the half-year period ending on September 30, 2023. The company's order intake climbed by 55.4% year-over-year, reaching a total of ¥3,137.0 billion. The company experienced a year-over-year gain in revenue of 10.3%, reaching ¥2,069.2 billion. This growth led to a business profit of ¥100.9 billion, reflecting an 84.1% rise compared to the previous fiscal year. Consequently, the company achieved a profit margin of 4.9%. The net income, or profit attributable to owners of the parent, experienced a significant year-over-year rise of 69.8%, amounting to ¥91.9 billion. This resulted in a profit margin of 4.4%. The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the specified period amounted to ¥168.9 billion, reflecting a substantial growth of 38.2% compared to the first half of the fiscal year 2022. Furthermore, the EBITDA margin experienced a positive shift of 1.7 percentage points, reaching 8.2% when compared to the same period in the previous year. The Energy sector experienced significant growth in order intake during the first half of the year, primarily due to a high demand for both new installations and after-sales services in Gas Turbine Combined Cycle (GTCC). This growth was reflected in the booking of seven large frame GTCC units. The segment's business profit had a YoY increase of ¥15.7 billion. This development can be attributed to a decrease in one-time items within the Thermal Power companies, as well as revenue expansion and margin enhancements in GTCC. These positive factors counterbalanced a one-time charge incurred in the Aero Engines division, specifically related to the PW1100G-JM Engine Programme.

The revenue in the P&I sector experienced a year-on-year increase of ¥58.5 billion, mostly attributed to the robust performance of the Metals Machinery and Engineering segments. The increase in business profit by ¥9.6 billion can be attributed to the expansion of the company's topline and the positive impact of foreign exchange effects in the Metals Machinery sector, along with enhancements in Engineering project margins.

The company, referred to as LT&D, experienced significant year-over-year growth in both order intake and revenue, amounting to ¥71.9 billion and ¥69.9 billion, respectively. The primary factor contributing to the rise in the Logistics Systems and Heating, Ventilation & Air Conditioning (HVAC) sectors was predominantly organic in nature. The segment business profit experienced a year-on-year increase of ¥28.2 billion, primarily attributed to revenue growth, pricing optimisation strategies implemented to counteract cost inflation, and the positive impact of foreign exchange fluctuations. ADS experienced a remarkable gain of ¥791.6 billion in year-on-year order intake, mostly driven by the Defence & Space sector. This development can be attributed to the acquisition of numerous significant defense-related projects from the Japan Ministry of Defence. The revenue in both the Defence & Space and Commercial Aviation sectors witnessed an increase, accompanied by a rise in business profit of ¥7.6 billion compared to the previous year. This growth can be attributed, at least in part, to the devaluation of the yen and a minor increase in Aero Structures deliveries.

Source: Mitsubishi News