Aug 05, 2022 16:40 JST

Source: Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries Achieves 22% YoY Increase in Order Intake and 52% YoY Increase in Net Profit in a Challenging First Quarter

TOKYO, Aug 05, 2022 - (JCN Newswire) - Mitsubishi Heavy Industries (TSE Code: 7011) announced that order intake rose 22.3% year-over-year to YEN917.8 billion in the quarter ended June 30, 2022. Revenue rose 2.3% to YEN871.3 billion year-over-year, resulting in business profit(1) of YEN14.9 billion, a 30.4% decrease from the previous fiscal year, which represents a profit margin of 1.7%. Net profit was YEN19.1 billion, an increase of 51.7% year-over-year, with a profit margin of 2.2%. EBITDA was YEN47.2 billion, a 12.2% decrease from FY2021, with a profit margin of 5.4%, down 0.9 percentage points year-over-year.

- Order intake, revenue, and net profit all exceeded Q1 FY2021 results, continuing upward trend from FY2020.
- Contracts executed for five large frame Gas Turbine Combined Cycle (GTCC) units in Americas, EMEA, and Asia. Strong order growth in Metals Machinery as capital expenditures by steelmakers in Asia and Americas increased.
- Materials cost inflation and supply chain disruptions continued, particularly affecting Logistics, Thermal & Drive Systems segment. Price optimizations underway to mitigate these effects in second half FY2022.
- Charges booked in Energy Systems, including downsizing of European coal-fired thermal power business as capacity adjusted to match long-term objectives in region.
- Fixed cost reductions and strategic asset sales progressing in accordance with 2021 Medium-Term Business Plan.

CFO Message:

"MHI is proud to have achieved strong orders in all segments in the first quarter of this fiscal year," Hisato Kozawa, Member of the Board, Executive Vice President, and Chief Financial Officer of MHI commented. "Considering the mid- to long-term market outlook in the EMEA region, we began reducing the scale of operations in our European coal-fired thermal power business and booked some charges associated with these actions. In parallel, MHI is looking to increase our presence in EMEA through the Energy Transition by offering decarbonization solutions as well as core technologies including hydrogen utilization and CO2 Capture, Utilization, and Storage (CCUS)."

Mr. Kozawa continued, "Despite securing YEN19.1 billion in net profit, the business environment remains challenging. In the first quarter, materials and logistics cost inflation and supply chain disruptions, including the lockdowns in China, continued to impact our businesses for longer than initially projected. As concerns of recession in North America and Europe mount, we will strive to improve profitability through various measures such as price optimization and further fixed cost reductions in the second half of the fiscal year."

(1) Profit before finance income, finance expenses, and income taxes

For more informaton, visit

Source: Mitsubishi Heavy Industries, Ltd.
Sectors: Energy, Alternatives

Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release

Takasago Hydrogen Park, the World's First Integrated Validation Facility for Technologies from Hydrogen Production to Power Generation, Enters Full-Scale Operation
September 20 2023 18:05 JST
SBM Offshore and MHI Sign Partnership Agreement for FPSO CO2 Capture Solution
September 15 2023 17:51 JST
A New Era: Challenges in Lunar Exploration and Manned Lunar Orbital Base Development
September 14 2023 16:04 JST
MHI Becomes a Full Member of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER)
September 14 2023 13:45 JST
MHI Thermal Systems Launches New "TEJ35GAM" Electric-Driven Transport Refrigeration Units
September 13 2023 11:38 JST
Global Combat Air Programme Industry Partners Agree Next Steps on Collaboration to Deliver Next Generation Combat Aircraft
September 12 2023 18:29 JST
MHI-MS Receives an Order for Millimeter-Wave Suppression Equipment from the Japan Automobile Research Institute
September 12 2023 13:02 JST
FirstElement Fuel Inc. and Mitsubishi Heavy Industries, Ltd. Complete the Reliability Testing of MHI's 90 MPa Class Liquid Hydrogen Pump (LH2 Pump) through the Long-Term Durability Test, Launching the LH2 Pump into the Markets
September 11 2023 15:34 JST
Launch Result of the H-IIA Launch Vehicle No.47 (H-IIA F47) which carries aboard XRISM and SLIM
September 07 2023 16:54 JST
MHI Receives Order for Front-End Engineering and Design of Hydrogen Fluoride Production Plant in Kitakyushu City, Fukuoka Prefecture
September 04 2023 16:31 JST
More Press release >>

Latest Press Release

More Latest Release >>