IHI Slumps as Profit Forecast Lags Behind Estimates: Tokyo MoverChris Cooper
IHI Corp., Japan’s biggest aircraft engine maker, plunged the most in more than eight months after it raised its net income forecast less than analysts estimated.
IHI fell as much as 8.2 percent, headed for its biggest decline since May 23. The shares were trading at 431 yen, or down 6.9 percent, as of 2:44 p.m. in Tokyo. The benchmark Nikkei 225 Stock Average dropped as much as 3.9 percent.
The company, which makes parts for Airbus Group NV A320 engines, increased its net income forecast to 27 billion yen ($267 million) for the year ending March 31, compared with a 31.1 billion yen average 11 analysts’ estimates compiled by Bloomberg. A weaker yen and cost improvements at units including energy, aerospace and construction equipment prompted the profit forecast increase, the Tokyo-based company said in a statement today.