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December 14, 2007 |
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IHI CORP: Posts JPY15.06BB Net Profit for Fiscal Year 2006 After reassessing the profitability of its plant and engineering projects, IHI Corp. released a major correction to its earnings for the fiscal year ended March 31, 2007, posting a consolidated net profit of JPY15.06 billion before tax adjustments, compared with the JPY45.3-billion reported earlier, Kyodo News reports. The heavy machinery maker booked an operating loss of JPY5.63 billion instead of JPY24.62 billion profit announced earlier. Sales for the previous fiscal year is now at JPY1.22 trillion from JPY1.23 trillion, relates Kyodo. The Asahi Shimbun reports that in regard with this accounting error, IHI president Kazuaki Kama will forfeit his salary for six months. According to the report, Mr. Kama will stay on as president to prevent the mistake from happening again, while IHI chairman Mototsugu Ito, who served as president for six year until March, will resign as director and become an adviser on January. Masumi Suga and Gregory Turk of Bloomberg News writes that a four-member external panel, commissioned by IHI, is expected to report reasons for the company's failure to provide valid costs for the plant and engineering projects; punitive measures will be announced against management and employees involved in the losses. The Tokyo Stock Exchange, Bloomberg reports, placed IHI on a "watch list" for delisting and will be investigated by the bourse. Also, Japan's Securities and Exchange Surveillance Commission may ask the Financial Services Agency to impose a fine as much as JPY1 billion for allegedly falsifying earnings, notes Bloomberg, citing Kyodo News. 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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