Kawasaki Heavy Industries : Flash Report for the First Quarter of the Fiscal Year Ending March 31, 2020(Consolidated Basis) (PDF...

KAWASAKI HEAVY INDUSTRIES, LTD. AND CONSOLIDATED SUBSIDIARIES

FLASH CONSOLIDATED FINANCIAL RESULTS	July 30, 2019
For three months ended June 30, 2019 and 2018 and one year ended March 31, 2019	(Consolidated)

Operating results

		Millions of yen	Thousands of U.S. dollars
	Three months ended		Three months ended		Three months ended
Net sales		Jun. 30, 2019			Jun. 30, 2018			Jun. 30, 2019
	350,778		343,785		$	3,255,480
Operating profit		1,088			7,103			10,097
Profit attributable to owners of parent		(8,249)			2,561			(76,557)
Earnings per share (Yen)		(49.38)			15.33

Financial position

		Millions of yen / Thousand shares	Thousands of U.S. dollars
		As of			As of		As of
Total assets		Jun. 30, 2019			Jun. 30, 2018		Jun. 30, 2019
	1,911,544		1,838,855		$ 17,740,548
Net assets		474,712			492,261	4,405,680
Number of shares issued and outstanding		167,045			167,045
Equity Ratio		24.0%			25.9%

Cash flows

		Millions of yen	Thousands of U.S. dollars
	Three months ended		Three months ended		Three months ended
		Jun. 30, 2019			Jun. 30, 2018		Jun. 30, 2019
Operating activities		(163,712)		(74,195)		$ (1,519,369)
Investing activities		(17,138)			(26,661)	(159,053)
Financing activities		150,583			89,264	1,397,522
Cash and cash equivalents at end of period		39,326			52,487	364,974

Fiscal year forecast					Millions of yen
		Net sales			Operating profit			Profit attributable to
						owners of parent
One year ending March 31, 2020		1,700,000		72,000		38,000

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(Consolidated)

Notes : 1. This "FLASH CONSOLIDATED FINANCIAL RESULTS" and following financial statements have been prepared in conformity with generally accepted accounting principles and practices in Japan.

2. All US$ amounts in these statements represent the arithmetical results of translating Japanese yen to U.S. dollars on the basis of ￥107.75=$1, the rate prevailing as of June 28, 2019, solely for the convenience of the readers.

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								(Consolidated)
Consolidated Balance Sheets
As of June 30 and March 31, 2019
		Millions of yen			Thousands of
				U.S. dollars
		As of			As of			As of
Assets		Mar. 31, 2019			Jun. 30, 2019			Jun. 30, 2019
Current assets					44,433	$	412,371
Cash and deposits		74,311
Notes and accounts receivable - trade		427,665			467,593			4,339,610
Merchandise and finished goods		68,176			73,968			686,478
Work in process		405,087			435,790			4,044,455
Raw materials and supplies		119,558			122,061			1,132,817
Other		45,333			64,639			599,898
Allowance for doubtful accounts		(3,792)			(3,577)			(33,197)
Total current assets		1,136,340			1,204,908			11,182,441
Non-current assets
Property, plant and equipment					192,775			1,789,095
Buildings and structures, net		194,939
Other		290,729			293,815			2,726,821
Total property, plant and equipment		485,669			486,591			4,515,926
Intangible assets		16,797			17,845			165,615
Investments and other assets					203,602			1,889,578
Other		201,471
Allowance for doubtful accounts		(1,422)			(1,402)			(13,012)
Total investments and other assets		200,048			202,200			1,876,566
Total non-current assets		702,514			706,636			6,558,107
Total assets		1,838,855			1,911,544			17,740,548
Liabilities
Current liabilities					210,560			1,954,153
Notes and accounts payable - trade		247,191
Electronically recorded obligations - operating		123,083			127,350			1,181,903
Short-term borrowings		100,023			140,529			1,304,213
Income taxes payable		10,390			5,239			48,622
Provision for sales promotion expenses		497			5,198			48,241
Provision for bonuses		21,168			23,589			218,923
Provision for construction warranties		13,096			12,567			116,631
Provision for loss on construction contracts		27,609			29,766			276,251
Advances received		181,419			173,567			1,610,831
Other		139,800			229,234			2,127,462
Total current liabilities		864,280			957,604			8,887,276
Non-current liabilities					140,000			1,299,304
Bonds payable		140,000
Long-term borrowings		187,568			187,086			1,736,297
Retirement benefit liability		97,602			97,027			900,483
Provision for the in service issues		11,468			10,333			95,898
of commercial aircraft jet engines
				44,781			415,601
Other		45,674
Total non-current liabilities		482,313			479,228			4,447,592
Total liabilities		1,346,593			1,436,832			13,334,868
Net assets
Shareholders' equity					104,484			969,689
Share capital		104,484
Capital surplus		54,542			54,542			506,190
Retained earnings		324,606			305,561			2,835,833
Treasury shares		(130)			(130)			(1,206)
Total shareholders' equity		483,502			464,457			4,310,506
Accumulated other comprehensive income					2,654			24,631
Valuation difference on available-for-sale securities		2,682
Deferred gains or losses on hedges		(227)			426			3,954
Foreign currency translation adjustment		(4,556)			(4,719)			(43,796)
Remeasurements of defined benefit plans		(5,014)			(3,674)			(34,097)
Total accumulated other comprehensive income		(7,115)			(5,313)			(49,309)
Non-controlling interests		15,874			15,568			144,483
Total net assets		492,261			474,712			4,405,680
Total liabilities and net assets		1,838,855			1,911,544			17,740,548

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(Consolidated)

Consolidated Statements of Profit and Loss

For three months ended June 30, 2019 and 2018

		Millions of yen		Thousands of
			U.S. dollars
	Three months ended	Three months ended		Three months ended
Net sales		Jun. 30, 2018			Jun. 30, 2019			Jun. 30, 2019
	343,785		350,778		$	3,255,480
Cost of sales		288,048			301,426			2,797,457
Gross profit		55,737			49,351			458,014
Selling, general and administrative expenses
Salaries and allowances		12,960			13,344			123,842
Research and development expenses		10,323			11,118			103,183
Other		25,349			23,799			220,872
Total selling, general and administrative expenses		48,634			48,262			447,907
Operating profit		7,103			1,088			10,097
Non-operating income
Interest income		93			135			1,253
Dividend income		142			223			2,070
Share of profit of entities accounted for using equity method		323			338			3,137
Foreign exchange gains		2,038			-			-
Other		601			732			6,794
Total non-operating income		3,198			1,430			13,271
Non-operating expenses					911
Interest expenses		753					8,455
Foreign exchange losses		-			5,039			46,766
Other		998			959			8,900
Total non-operating expenses		1,751			6,910			64,130
Ordinary profit (loss)		8,550			(4,391)			(40,752)
Profit (loss) before income taxes		8,550			(4,391)			(40,752)
Income taxes		5,636			3,578			33,206
Profit (loss)		2,913			(7,969)			(73,958)
Profit attributable to non-controlling interests		352			279			2,589
Profit (loss) attributable to owners of parent		2,561			(8,249)			(76,557)

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(Consolidated)

Segment information

Information by reportable segment

					Millions of yen
					Three months ended
					Jun. 30, 2018
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		104,946		3,886		108,832		5,325
Energy System & Plant Engineering		51,004			4,248			55,253			233
Precision Machinery & Robot		47,992			3,734			51,726			4,596
Ship & Offshore Structure		22,085			663			22,748			1,358
Rolling Stock		23,392			3			23,395			(915)
Motorcycle & Engine		73,757			160			73,917			(3,308)
Other		20,607			8,988			29,595			359
Total		343,785			21,684			365,470			7,649
Eliminations and corporate		-			(21,684)			(21,684)			(546)
Consolidated total		343,785			-			343,785			7,103
					Millions of yen
					Three months ended
					Jun. 30, 2019
		External		Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems		122,188		2,383		124,572		4,869
Energy System & Plant Engineering	45,017			5,407			50,425			828
Precision Machinery & Robot		48,347			3,253			51,600			1,760
Ship & Offshore Structure		22,895			2,100			24,996			(398)
Rolling Stock		20,424			8			20,433			(3,548)
Motorcycle & Engine		68,356			138			68,494			(2,849)
Other		23,546			9,162			32,709			472
Total		350,778			22,454			373,232			1,134
Eliminations and corporate		-			(22,454)			(22,454)			(45)
Consolidated total		350,778			-			350,778			1,088
					Thousands of U.S. dollars
					Three months ended
					Jun. 30, 2019
		External			Intersegment			Total			Operating
		sales			sales			sales			profit (loss)
Aerospace Systems	$	1,133,995	$	22,116	$	1,156,121	$	45,188
Energy System & Plant Engineering		417,791			50,181			467,981			7,684
Precision Machinery & Robot		448,696			30,190			478,886			16,334
Ship & Offshore Structure		212,483			19,490			231,981			(3,694)
Rolling Stock		189,550			74			189,633			(32,928)
Motorcycle & Engine		634,394			1,281			635,675			(26,441)
Other		218,524			85,030			303,564			4,381
Total		3,255,480			208,390			3,463,870			10,524
Eliminations and corporate		-			(208,390)			(208,390)			(418)
Consolidated total	$	3,255,480		$	-		$	3,255,480		$	10,097

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