Kawasaki Heavy Industrial Ltd (KWHIF) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

My name is Yamamoto. Thank you for your participation. Now I would like to present financial highlights. The consolidated results for the second quarter of fiscal year 2024 show some variation from segment to segment, but results overall were positive, and we recorded the highest ever revenue and business profit for a second quarter. Regarding the full year forecast for fiscal year 2024, this has been revised for each segment based on the first half financial results. However, the overall forecast of 130 billion yen in business profit remains unchanged from the initial forecast, and the dividends remain unchanged at 140 yen per year. This concludes the summary. I will provide more details beginning on page 3. In the second quarter of fiscal year 2024, orders received were 895.3 billion yen, revenue was 884.1 billion yen, business profit was 47.7 billion yen, and quarterly profit before tax was 23.7 billion yen. Quarterly profit attributable to owners of parent was 13.6 billion yen. Despite the positive results for business profit, for quarterly profit before tax and subsequent items, there was a smaller increase in profit margin because of reduced valuations of foreign currency-denominated assets. This was caused by the sudden strengthening in the yen at the end of September. As you can see, the weighted average exchange rate was approximately 14 yen weaker than that of the previous year, and US dollar-based transactions amounted to approximately $1.03 billion. This chart provides a breakdown of orders received, revenue, and business profit for each segment. As you can see in one, there was a significant recovery in the aerospace systems business from the loss in PW1100G engine business in the same quarter last year. There was also a sharp improvement in the profitab...