Mitsubishi Results Get A Boost From Weak Yen

Mitsubishi Heavy said on Thursday that it posted a parent current profit of 89.14 billion yen ($788 million) in the six months to September 30, up 12.6 per cent from a year ago.

Its half-year sales were 1.18 trillion yen ($10.4 billion), up 10.2 per cent from a year ago. We posted our largest-ever interim sales and profits. We received more yen for dollar-denominated exports due to the weaker yen, a company spokesman said.

Current profit is pre-tax, including gains and losses made on securities investments and other non-operating activities.

The yens value against the dollar has dropped about 13 per cent over the past year.

 

In the first half of 1996-97, sales from exports accounted for 30.9 per cent of the companys overall sales. In the same period a year ago, the ratio was 22.8 per cent.

Mitsubishi Heavy also raised its half-year dividend for the first time since the 1990-91 business year, paying out five yen (four cents) for the six months to September 30, up from the four yen (3.5 cents) it paid for the same period a year ago.

Mitsubishi Heavy is Japans largest machinery maker.

, manufacturing various products ranging from aircraft to airconditioners.

In the six-month period, the company saw higher sales at all its divisions except those for industrial plants, general machinery and air conditioning systems, the spokesman said.

Sales at its aircraft and special vehicles divisions in the six-month period were particularly strong, up 69.8 per cent from the same period a year ago, partly because of sales of Boeing 777 aircraft, which Mitsubishi jointly developed and makes with Boeing Co of the United States, the spokesman said.

Despite a rise in sales and profits, the orders Mitsubishi won in the six months edged down 0.4 per cent from the same period a year ago, partly due to a delay in orders for public works projects, the spokesman said.

As Mitsubishi received many power plant orders in the six months to September 30, 1995, this also made the orders it won during this years April-September period look smaller by comparison, he said.

Mitsubishi said it expects to post parent current profit of 192.50 billion yen ($1.70 billion) in the full 1996-97 year, up from 166.66 billion yen ($1.47 billion) last year. It plans to pay a 10-yen (nine cents) annual dividend for 1996-97, up from 9 yen (eight cents) the previous year.