Mitsubishi Heavy Shares Jump on Optimistic Profit ForecastChris Cooper
Mitsubishi Heavy Industries Ltd., the Japanese maker of ships and aircraft parts, surged the most in almost three months in Tokyo trading after its forecast for operating profit beat previous estimates.
Shares of the company jumped as much as 9.4 percent to 418 yen before trading at 405 yen as of 1:55 p.m. in Tokyo. That’s the biggest intraday rise for the stock since Feb. 15.
Operating profit may grow 13 percent to 350 billion yen ($3.3 billion) for the financial year that started April 1, Mitsubishi Heavy said in a statement Monday. That beat an estimated 334 billion yen. The company’s forecast for net income and revenue both lagged behind analyst estimates.
The company, whose subsidiary is building Japan’s first passenger jet aircraft, also said it can’t calculate how issues at Mitsubishi Motors Corp. will affect its earnings. Mitsubishi Heavy is the largest shareholder of the carmaker, which admitted that it covered up defects in its cars. Mitsubishi Motors’ Existence at Risk as Fraud Case Widens
Last month, Mitsubishi Heavy reported a full-year preliminary net income that missed analyst estimates because of losses in its cruise-ship construction business. The company booked additional losses on a ship order from Aida Cruises Ltd. after delivering the first of two vessels in March because construction of the second cruiser was “significantly impacted” by a delay in handing over the first vessel.
Mitsubishi Heavy forecast net income of 130 billion yen for this business year, compared with an average of 144 billion yen estimated by analysts.