Kawasaki Profits on Railcar Business

Kawasaki Heavy Industries Ltd., the manufacturer of aircraft parts, construction equipment, motorcycles and ships, reported a profit of 3.36 billion yen ($31.6 million) in its second quarter ended Sept. 30, compared with last year’s 3.4 billion yen loss.
Kawasaki said sales rose almost three percent to 537.7 billion yen. It said record sales of railcars to Taiwan’s high-speed rail network helped it recover from last year’s loss.
Kawasaki did not disclose second-quarter earnings.
First-half operating profit, or sales minus the cost of goods sold and expenses, more than quadrupled to 6.9 billion yen. Current profit, or pretax earnings from operations, rose to 7 billion yen compared to last year’s 963 million yen current loss.
However, a company spokesman said first-half profit was eroded by the rising price of steel and a stronger yen. The stronger Japanese currency eroded first-half profit by 7 billion yen, while rising steel prices will add between 5 billion yen and 6 billion yen to the company’s full-year costs, he said.
Full-year sales may rise to 1.26 trillion yen, Kawasaki said. The company’s operating profit forecast remains unchanged at 10 billion yen.