Mitsubishi Heavy Industries' shipbuilding arm sank to a third quarter net loss due mainly to the effects of a stronger yen and a revision of the reserve for losses on construction contracts, Seatrade Asia reports.
The shipbuilding division posted third quarter net loss of JPY5.1bn ($66.9m) as against net profit of JPY4.5bn in the same period of 2010.
The consolation came from an increase in revenue and higher number of orders received, the Japanese company said.
Revenue during the quarter came up to JPY235bn, up 9.3% from JPY215bn. Orders received more than doubled to JPY163.8bn compared to JPY71.9bn.
“Although the orders environment for new commercial ships remained difficult, orders increased from a year ago given orders for cruise ships and LNG carriers,” Mitsubishi said.
“Negotiations involving LNG carriers are becoming more active reflecting heightened demand for LNG. We are proactively negotiating to receive orders.”
The shipbuilding division posted third quarter net loss of JPY5.1bn ($66.9m) as against net profit of JPY4.5bn in the same period of 2010.
The consolation came from an increase in revenue and higher number of orders received, the Japanese company said.
Revenue during the quarter came up to JPY235bn, up 9.3% from JPY215bn. Orders received more than doubled to JPY163.8bn compared to JPY71.9bn.
“Although the orders environment for new commercial ships remained difficult, orders increased from a year ago given orders for cruise ships and LNG carriers,” Mitsubishi said.
“Negotiations involving LNG carriers are becoming more active reflecting heightened demand for LNG. We are proactively negotiating to receive orders.”