Kawasaki Heavy Industries shipyard

Japan’s Kawasaki Heavy Industries May Pull Out of Shipbuilding

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October 1, 2016

Kawasaki Heavy Industries’ shipbuilding yard in Kobe, Japan. Photo: Kawasaki

ReutersTOKYO, Oct 1 (Reuters) – Japan’s Kawasaki Heavy Industries Ltd said it would consider a drastic revision of its shipbuilding business due to its worsening profitability and indicated that it may pull out of the business.

The company on Friday revised its profit outlook lower for the business year ending next March, citing a stronger yen against the dollar and a decline in operating profitability from the shipbuilding business.

The company said it would consider what to do with the shipbuilding business including whether to continue the business and aimed to reach a final decision by the end of March.

Global shipbuilding companies have been suffering from a slide in new vessel orders amid a volatile global economy. (Reporting by Osamu Tsukimori; Editing by Christian Schmollinger)

(c) Copyright Thomson Reuters 2016.

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