Kawasaki Heavy Industries Ltd. returned to profit in its fiscal first half as aerospace sales surged, while announcing plans to sell a minority stake in its motorcycle unit to Itochu Corp. to accelerate growth initiatives.
The Japanese manufacturer posted a net income of 13.7 billion yen (US$91 million) in the six months through September, compared with a 23.3 billion yen loss a year earlier, when it booked charges related to engine issues. Revenue climbed 15% to 884.2 billion yen.
Kawasaki will sell 20% of Kawasaki Motors Ltd. to trading house Itochu for 80 billion yen in a deal expected to close next April. The transaction aims to strengthen the motorcycle unit’s U.S. retail financing capabilities and global distribution network.
The company maintained its full-year operating profit forecast at 130 billion yen but trimmed its revenue outlook by 3% to 2.18 trillion yen, citing weaker motorcycle sales in North America and delays at a new plant in Mexico.
Aerospace systems revenue nearly doubled to 234.1 billion yen as commercial aviation recovered. However, the company faces headwinds from Boeing Co.’s production disruptions following quality issues.
The Itochu partnership will help establish direct consumer financing in North America, Kawasaki’s largest motorcycle market. The proceeds will fund investments in hydrogen technology and other growth initiatives outlined in its 2030 vision.
“This alliance bears great significance for the entire group,” said CEO Yasuhiko Hashimoto, noting it would accelerate investment in focal growth areas while improving capital efficiency.
