Kawasaki Heavy Industries May Exit Shipbuilding

KHI

By Reuters 2016-10-01 18:06:16

Japan's Kawasaki Heavy Industries said it would consider a drastic revision of its shipbuilding business due to its worsening profitability and indicated that it may pull out of the business.

The company on Friday revised its profit outlook lower for the business year ending next March, citing a stronger yen against the dollar and a decline in operating profitability from the shipbuilding business.

The company said it would consider what to do with the shipbuilding business including whether to continue the business and aimed to reach a final decision by the end of March.

Global shipbuilding companies have been suffering from a slide in new vessel orders amid a volatile global economy.