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December 12, 2007 |
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IHI CORP: To Book JPY30 Bil. in Operating Losses for FY06-07 IHI Corp. said it would book JPY30 billion in operating losses for the business year ended in March 31, 2007, after reassessing the profitability of its plant and engineering projects, Nathan Layne writes for Reuters. Reuters recalls that in late September, IHI shocked investors by slashing its outlook to an operating loss of JPY17 billion for the current fiscal year compared with an earlier forecast of JPY40 billion profit, because of delays and bigger-than-expected costs for energy and plant projects. The Tokyo Stock Exchange, according to Reuters, said it has placed IHI's stock on its supervisory post. The company's shares, according to a spokesman for the bourse, could be delisted if it is found to have made false securities statements and the impact of those actions is deemed serious. IHI, at that time when it announced its outlook adjustment in September, also warned that it could incur an additional JPY28 billion in operating losses after reassessing planned cost cuts relating to long-term plant projects, some of which could be booked in the year to March 2007, recounts Reuters. The report adds that of the JPY28 billion in additional losses, IHI said JPY18 billion would be booked in 2006-2007. It also plans to book JPY12 billion of the JPY57 billion originally planned for this year in 2006-2007. Reuters says that IHI would book an additional JPY10 billion in operating losses for the current year and because it will transfer, JPY12 billion in losses to FY2006-2007, its loss outlook for this fiscal year will improve by JPY2 billion, as compared to a loss of JPY15 billion from the previous estimate for a loss of JPY17 billion. About IHI Corp. Based in Tokyo, Japan, IHI Corporation, -- http://www.ihi.co.jp -- formerly Ishikawajima-Harima Heavy Industries Co., Ltd., is a Japan-based company engaged in six business segments. The Logistics and Steel segment offers concrete products, automated storages, loaders and others. The Machinery segment offers plastic processing machines, industrial boilers, pumps and others. The Energy Plant segment develops waste incineration facilities, nuclear power plants, thermal power plants and process plants, water treatment plants, renewable power plants and other facilities. The Aerospace segment produces aircraft engine parts and provides aircraft maintenance services. The Ship and Offshore segment builds container ships, bulk carriers, tankers and other ships, as well as develops marine equipment and machinery and provides design and engineering services. The Others segment provides real estate, financial and insurance services. The Troubled Company Reporter-Asia Pacific reported on July 13, 2007, that Standard & Poors Rating Agency affirmed its BB+ long- term corporate credit rating with a positive outlook. |
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