Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Mitsubishi Heavy Industries, Ltd.    7011   JP3900000005

MITSUBISHI HEAVY INDUSTRIES, LTD.

(7011)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Japan's plan to build missile defence system at sea faces mounting costs - source

10/22/2020 | 01:29am EST

TOKYO, Oct 22 (Reuters) - Basing Japan's missile defence systems at sea may cost at least twice as much to complete as its now-abandoned plans for Aegis Ashore ground-based sites and delay it to 2028, a person with knowledge of the plans told Reuters.

Fitted with powerful Lockheed Martin Corp radars, Japan's Aegis Ashore systems are meant to intercept missile strikes from North Korea and elsewhere. In June, defence minister Taro Kono suspended plans for two land sites, which would have cost about $2 billion to construct, citing the possibility that booster rockets could fall on local residents.

Instead, he suggested installing the systems on sea platforms or ships.

Defence ministry officials are considering several proposals, including putting Aegis on platforms resembling oil rigs, or on converted merchant ships or naval vessels. Kono's successor, Nobuo Kishi, has said he will make a decision on the future of Aegis Ashore by year end.

Delays and higher costs could rekindle support for an onshore plan, as Japan's public finances are strained by debt exacerbated by massive coronavirus economic aid spending.

A defence ministry official said he was unaware of the new cost and time estimates for missile defence at sea. The land-based Aegis Ashore batteries were scheduled to be operational in 2025.

Some of those proposals could cost more than $4 billion each, not including interceptor missiles and operating expenses, which would exceed those of land stations because of fuel, maintenance and larger crews, said the person familiar with the matter, who has seen estimates being discussed by defence ministry officials.

The person declined to be identified because of the sensitivity of the plans.

A destroyer has about 300 sailors, about 10 times more people than needed for a land site, according to Japan's defence ministry.

Armed with interceptor missiles designed to hit warheads in space, Aegis Ashore's Lockheed Martin SPY-7 radar has at least three times the range of older Aegis radars already on Japanese warships.

"We are here to support whatever Japan needs, and in our mind, there is no option that is off the table," said Tom Rowden, the vice president responsible for Lockheed's overseas Rotary and Mission System business, including Aegis Ashore in Japan. "Our main focus here is to give Japan the capability that they need to be able to defend their country."

In 2019, Japan listed China as its main security threat for the first time, pointing to Beijing's burgeoning defence spending and military manoeuvres. Japan has also said it is concerned about a resurgence in Russian activity around Japan.

Although Japan usually pays for big U.S.-built military projects through the U.S. government's Foreign Military Sales programme, it is buying SPY-7 directly from Lockheed and has paid half of the $300 million contract already.

The possibility that Aegis Ashore will be based at sea has spurred Raytheon Technologies Corp, which lost the contract to Lockheed in 2018, to promote its SPY-6 radar for Japan instead.

Defence ministry officials say they prefer the SPY-7 and are sticking with it. But some influential lawmakers from Japan's ruling Liberal Democratic Party, such as former deputy defence minister and deputy foreign affairs minister Masahisa Sato, favour SPY-6 because the U.S. Navy plans to use it on new Aegis Ashore destroyers. (Reporting by Tim Kelly; Editing by Gerry Doyle)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
LOCKHEED MARTIN CORPORATION 0.77% 370.85 Delayed Quote.-5.49%
MITSUBISHI HEAVY INDUSTRIES, LTD. 0.13% 2603 End-of-day quote.-38.72%
RAYTHEON TECHNOLOGIES CORPORATION 4.13% 72.64 Delayed Quote.-17.76%
All news about MITSUBISHI HEAVY INDUSTRIES, LTD.
11/20MITSUBISHI HEAVY INDUSTRIES : Engineering to Establish "Decarbonation Business D..
AQ
11/17MITSUBISHI HEAVY INDUSTRIES : U.S. warship successfully destroys ICBM target in ..
RE
11/16MITSUBISHI HEAVY INDUSTRIES : MHI Included in Dow Jones Sustainability Asia Paci..
BU
11/16MITSUBISHI HEAVY INDUSTRIES : MHI Included in Dow Jones Sustainability Asia Paci..
AQ
11/11MITSUBISHI SHIPBUILDING PARTICIPATIN : PoC in Tokyo 2020" Exploring the Future o..
AQ
11/10Siemens Energy drops most coal business following spin-off
RE
11/06Canada's Bombardier faces UK bribery probe over plane sales
RE
11/05Canada's Bombardier faces UK bribery probe over plane sales
RE
11/04MITSUBISHI HEAVY INDUSTRIES : First Japan-built LNG-fueled PCC with FGSS Supplie..
AQ
11/04MITSUBISHI HEAVY INDUSTRIES : New MHIAEL Nagasaki Plant for Aero Engine Componen..
AQ
More news
Financials
Sales 2021 3 696 B 35 390 M 35 390 M
Net income 2021 9 975 M 95,5 M 95,5 M
Net Debt 2021 1 335 B 12 781 M 12 781 M
P/E ratio 2021 61,8x
Yield 2021 2,88%
Capitalization 875 B 8 370 M 8 376 M
EV / Sales 2021 0,60x
EV / Sales 2022 0,57x
Nbr of Employees 81 631
Free-Float 91,4%
Chart MITSUBISHI HEAVY INDUSTRIES, LTD.
Duration : Period :
Mitsubishi Heavy Industries, Ltd. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MITSUBISHI HEAVY INDUSTRIES, LTD.
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 10
Average target price 2 895,00 JPY
Last Close Price 2 603,00 JPY
Spread / Highest target 92,1%
Spread / Average Target 11,2%
Spread / Lowest Target -23,2%
EPS Revisions
Managers
NameTitle
Seiji Izumisawa President, CEO, Director & Chief Strategy Officer
Shunichi Miyanaga Chairman
Hisato Kozawa CFO, Representative Director & Executive Officer
Michisuke Nayama Chief Technology Officer & Executive VP
Eisaku Ito CTO, Executive Officer & GM-ICT Solutions
Sector and Competitors
1st jan.Capitalization (M$)
MITSUBISHI HEAVY INDUSTRIES, LTD.-38.72%8 370
HONEYWELL INTERNATIONAL INC.15.58%141 741
SIEMENS AG-4.17%103 249
3M COMPANY-1.29%99 727
GENERAL ELECTRIC COMPANY-9.77%85 496
ILLINOIS TOOL WORKS INC.16.22%64 519