Business News

MHI: About FY2008 First-half Consolidated Financial Results

Wednesday 22. October 2008 - Mitsubishi Heavy Industries, Ltd. (MHI) today announced that the company's consolidated financial results for the first half of fiscal year (FY) 2008 (April 1, 2008 to September 30, 2008) are expected to diverge widely from its FY2007 first-half results, as shown in the following table. The actual FY2008 first-half results and related details will be released on October 31.

Note:
MHI is disclosing the following estimates for the first half of the current fiscal year based on timely disclosure rules of the Tokyo Stock Exchange. The rules call for listed companies that have not disclosed the estimates for the period to disclose estimated results when the results in question are expected to diverge widely from the actual results for the corresponding period of the previous fiscal year.

Estimates of consolidated results for the first half of FY2008
(April 1, 2008 to September 30, 2008)

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FY2008
Apr. – Sep.
(Estimates)
FY2007
Apr. – Sep.
(Actual)
Changes
(Amount)
Changes
(%)
Net Sales

1,574.6

1,446.4

128.1

8.9
Operating Income

72.7

55.8

16.8

30.1
Ordinary Income

75.5

41.0

34.4

84.1
Net Income
29.0

27.9

1.0

3.6
Please note that the estimated figures in the table are projected based on information and data available and assumptions made at the time of this announcement. Therefore please be advised that the actual results may diverge from these estimates.

Supplementary Explanation
MHI’s consolidated net sales for the first half of FY2008 are expected to exceed the corresponding figure recorded in the first half of FY2007, on the back of sales expansion, especially in Power Systems segment.

In comparison with the year-earlier figure, operating income in the first half of FY2008 is expected to post an overall increase. Increases are projected for the Shipbuilding & Ocean Development, Power Systems and Machinery & Steel Structures segments, while decreases are expected in the Aerospace and Mass & Medium-Lot Manufactured Machinery segments.

Ordinary income is also expected to increase from the first half of FY2007, due mainly to the aforementioned increase in operating income as well as to improvement in foreign exchange gains, which are booked as non-operating income.

In the first half of FY2007 extraordinary income exceeded extraordinary expenses, but in the first half of FY2008 extraordinary losses are expected to substantially outstrip extraordinary income, chiefly due to extraordinary expenses booked in the first quarter for the “effect of the application of the accounting standard for measurement of the inventories.” As a result, net income in the first half of FY2008 is projected at the same level as in the first half of FY2007.