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5-day change
1st Jan Change
5,097
JPY
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+2.66%
+63.42%
Kawasaki Heavy Industries : Management Overview (PDF:1.20MB)
April 25, 2019 at 12:43 am EDT
Management Overview
0
April 25, 2019
Trend of Financial results
Orders Received Net Sales
120.0
Operating
FY2018
Income
Forecast in April
1,693.6
1,608.0
1,700.0
1,700.0
1,541.0
1,518.8
1,574.21,585.9
1,500.0
1,594.7
1,348.7
1,000.0
500.0
0.0
FY2015
FY2016
FY2017
FY2018
FY2019
Assumed
Forecast
exchange
118.99
108.98
110.62
110.77
110.00
rates
(USD)
MTBP2016
959
Operating Income:75.0
(9.4%)
ROIC:8.0%
90.0
72.0
640
(6.7%)
559 (4.5%)
60.0 459 (3.9%)
(5.0%)
30.0
0.0
FY2015
FY2016
FY2017
FY2018
FY2019
Forecast
118.99
108.98
110.62
110.77
110.00
MTBP2016
© 2019 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved
2
Rolling Stock Business Restructuring Committee
- Discussion Results
Reasons for recording losses in Rolling Stock Business
Inadequate risk recognition at bidding and insufficient cost, design, and quality management are the main factors
M9
Projects
in Japan
Other Projects
in U.S.
• Planned cost reduction cannot be achieved based on a decrease in the final amount of delivered train cars.
• Increase in material costs due to unachieved cost reduction target and rising prices of procured products.
• Excessive time to agree on the specification interpretation with the customer, causing process delays.
• Unachieved cost reduction target.
• Higher material costs than expected.
• Difference in specification interpretation with customers.
• Wiring installation defects found in project for WMATA*, and required repairs of the delivered cars. (Due to work procedures and training)
* Washington Metropolitan Area Transit Authority
© 2019 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved
4
Rolling Stock Business Restructuring Committee
- Discussion Results
Restructuring business voluntarily by executing the following policies:
Policy①
Strengthen Project Management
Policy②
Reform Quality Management System
Emphasis on quality over quantity
Japan
• While maintaining an strong competitive environment among rolling stock manufacturers, we will
receive orders at the appropriate price by maintaining and strengthening non-price
competitiveness utilizing technology.
• Supply high-value-added key components.
Policy③
North
• Develop business focused on customers whom we can demonstrate our superiority based on past
America
delivery results. (NY subway etc.)
• Promotion of new business such as track monitoring business utilizing IoT technology.
Asia
• While a large number of Asian yen loan projects are expected based on the promotion of railway
infrastructure exports by Japanese government, dealing mainly with low risk yen loan projects and
securing profitability.
Compre
• Expansion of stock-type business with strength in increasing number of delivered cars.
hensive
© 2019 KAWASAKI HEAVY INDUSTRIES, LTD. All Rights Reserved
5
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Kawasaki Heavy Industries Ltd. published this content on 25 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 April 2019 04:42:11 UTC
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Duration Auto. 2 months 3 months 6 months 9 months 1 year 2 years 5 years 10 years Max.
Period Day Week
More charts
Kawasaki Heavy Industries, Ltd. specializes in manufacturing and marketing of transportation and industrial machines equipments. Net sales break down by activity as follows:
- sale of motorcycles and engines (29.8%);
- sale of aerospace equipments (19.9%): aircrafts, helicopters, missiles, electronic equipments, monorails, etc.;
- sale of gas turbines (19.8%): turbines for naval, marines and industrial applications, generators, propulsion systems, etc. The group also develops naval construction activity (construction of ships, submarines, bulk carriers, oil tankers, etc.);
- sale of precision machines (16.8%): primarily hydraulic machines. The group is also developing a manufacturing of industrial machinery activity (tunnel boring machines, curling machines, grinding machines, etc.);
- sale of railway equipments (8.4%): train cars, electric and diesel locomotives, monorails, etc.;
- other (5.3%).
More about the company
Last Close Price
4,955
JPY
Average target price
4,500
JPY
Spread / Average Target
-9.18%
Consensus
1st Jan change
Capi.
+63.42% 5.49B +16.92% 909B 0.00% 239B +37.53% 192B -2.13% 134B +36.73% 84.24B +2.44% 80.16B -2.97% 58.7B -17.34% 43.35B +25.66% 34.8B
Consumer Goods Conglomerates
+951% of historical performance
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