Mitsubishi Heavy Industries Ltd. is preparing to divest its forklift manufacturing unit Mitsubishi Logisnext Co. after the subsidiary posted declining profits and struggled with North American operations, Nikkei reported.
The Japanese industrial giant has appointed financial advisers to manage the sale of its 64.6% stake in Logisnext, which could fetch about 100 billion yen ($800 million). Several investment funds have expressed interest in acquiring the Tokyo-listed unit.
Logisnext, which ranks fourth globally in market share, has faced significant headwinds. The company’s net profit plunged 40% to 9.9 billion yen in the April-September period, while sales dropped 4% to 328.5 billion yen. The decline was largely attributed to shipment disruptions following delays in engine certification for the North American market.
The company has slashed its full-year profit forecast by 11 billion yen to 18 billion yen, highlighting ongoing operational challenges. This performance stands in stark contrast to sector leader Toyota Industries, which reported an 18% jump in operating profit for its materials handling division.
The potential sale aligns with Mitsubishi Heavy’s strategy to focus on core businesses like nuclear power and defense, while addressing pressure from investors to improve capital efficiency. Meanwhile, Logisnext aims to reach 1 trillion yen in sales by 2035, a target that may require greater operational independence.
