Kawasaki Heavy Industries, Ltd.
- Kawasaki Heavy Industries, Ltd. is a multinational corporation incorporated in 1896. The company operates in aerospace systems, rolling stock, energy solution & marine engineering, precision machinery & robots, and motorcycles & engine segments.
- Total number of employees of the company as of March 31, 2022 is 36,587.
- Kawasaki has reported a revenue of ¥1,196.3 billion in the third quarter of FY23, ended December 31, 2022, up from ¥1,038.6 billion during the same quarter a year earlier. The profits for the quarters are reported ¥80.8 billion and ¥28.7 billion for the quarters, respectively.
- In the financial year ended on March 31, 2022, the company has reported ¥1,500.88 billion in net sales, up from ¥1,488.48 billion. Ordinary profit of the company is reported ¥29.93 billion in 2022 and ordinary loss of ¥2.85 billion in 2021. After accounting for the extraordinary incomes and losses, the company has reported ¥23.98 billion in profit in 2023, and ¥17.49 billion in losses in 2021.
Brief Company Overview
Kawasaki Heavy Industries, Ltd. (TYO:7012) is a multinational corporation incorporated in 1896 in Japan. The company is headquartered in Minato City, Tokyo, Japan and in Kobe, Hyogo, Japan. Business segments of the company includes aerospace systems, rolling stock, energy solution & marine engineering, precision machinery & robot, and motorcycle & engine.
Currently, Yasuhiko Hashimoto is the president of the company. Paid-in capital of the company is ¥104,484 million with number of shares issued 167,921,800 as of March 31, 2022. Total number of employees of the company as of the same date is 36,587. Net sales of the company during the fiscal year ended March 31, 2022 is ¥1,500,879 million.
Kawasaki is listed on Tokyo Stock Exchange with trading code "7012". Trailing P/E ratio is 8.07 times, P/S ratio (ttm) is 0.31, P/B ratio (mrq) is 0.91, return on equity (ttm) is 13.27%.
- Kawasaki launched its special web page "Kawasaki ViSiON Map 2030" on its online media in February, 2023.
- Kawasaki keeps working on a tree-wheeled model that will like compete against Yamaha's Niken.
- The company unveiled net R211 subway cars in March, 2023.
- Recently, the company has introduced ULTRA 160LX and ULTRA 160LX-S JET SKI MODELS, Ninja ZX-4R Full-Fairing Four-Cylinder Supersport, and Kawasaki's first electric and hybrid motorcycles.
Q3 FY2023 Highlights
In the third quarter of FY2023, the company has received orders of ¥1,476.5 billion as compared to ¥1,026.4 billion during the third quarter of the previous year. Against the orders, reported revenue for the quarters are ¥1,196.3 billion and ¥1,038.6 billion, respectively. Profits increased by ¥52.1 billion over the quarters from ¥28.7 billion to ¥80.8 billion. The profit has increased in three segments - aerospace systems, energy solution & marine engineering, powersports & engine (previously 'Motorcycle & Engine'). The aerospace system did well because of recovery in the air passenger demand, energy solution & marine engineering profit increased due to a reaction to loss provisions in Chinese shipbuilding joint ventures, and powersports & engine profits increased due to strong outdoor leisure demand. All segments reflect increased profit due to depreciation of yen.
Annual Performance Highlights
In the financial year ended on March 31, 2022, the company has reported ¥1,500.88 billion in net sales, up from ¥1,488.48 billion. Gross profit of the company is ¥256.59 billion for the FY22, while it was ¥191.16 billion a year earlier. Operating profit of the company has been ¥45.81 billion in the latest financial year, while it was an operating loss of ¥5.3 billion a year earlier. The company has reported total non-operating income of ¥9.34 billion in 2022, as compared to ¥15.22 billion a year earlier. During 2021, the company has reported a reversal of provision for the in-service issues of commercial aircraft jet engines of ¥3.31 billion as non-operating income. Kawasaki incurred almost double the total non-operating expenses in 2022 because of a share of ¥14.41 billion loss from the entities reported under equity method. Total non-operating expenses in 2022 is ¥25.21 billion, as compared to ¥12.77 billion a year earlier. Thus, ordinary profit of the company is reported ¥29.93 billion in 2022 and ordinary loss of ¥2.85 billion in 2021. After accounting for the extraordinary incomes and losses, the company has reported ¥23.98 billion in profit in 2023, and ¥17.49 billion in losses in 2021.
In 2022, current assets were ¥1,297.7 billion, ¥12.3 billion increase from the previous fiscal year due to an increase in other items such as accounts receivable-other. Non-current assets were ¥724.9 billion, ¥47.0 billion increase from the previous year due to increase in investments and other assets. Thus, total assets reported during 2022 is ¥2,022.7 billion, ¥59.4 billion increase from the previous fiscal year.
Interest bearing debt was ¥501.4 billion, ¥91.8 billion decrease from the previous fiscal year. Liabilities were ¥1,524.2 billion, ¥43.7 billion increase from the previous fiscal year due to increases in advances received of contract liabilities and other factors. Net assets were ¥498.5 billion, ¥15.7 billion increase from the previous fiscal year due to an increase in foreign currency translation adjustment.
In 2022, operating activities provided net cash of ¥1,144.4 billion, ¥1,109.8 billion increase from the previous fiscal year. Major sources of operating cash flows included depreciation of ¥160.8 billion and an increase in advances received of contract liabilities of ¥192.0 billion. Major uses of operating cash flows included expenditure of ¥139.0 billion due to an increase in inventory. Investing activities used net cash of ¥152.5 billion which is ¥115.1 billion more than in the previous fiscal year, mainly due to purchase of property, plant and equipment, as well as intangible assets. Financing activities used net cash of ¥1,102.3 billion, which is ¥1,125.4 billion more than in the previous fiscal year, when financing activities provided net cash of ¥123.0 billion. This was mainly due to net decrease in short-term borrowings.
Kawasaki manufactures a wide range of rolling stock including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and new transit systems. The company has two full-scale factories in the U.S. besides its main Kobe Head Office.
Orders received in this segment during the fiscal year 2022 has decreased by ¥5.5 billion to ¥71.5 billion compared to the previous fiscal year. Consolidated net sales of this segment has been ¥126.6 billion, down by ¥6.5 billion year-on-year. Operating profit from the segment is reported ¥3.2 billion, an increase of ¥7.8 billion despite the decrease in sales.
Energy Solution & Marine Engineering
In pace with the changing world's energy situation, Kawasaki offers a range of solutions including power generation, energy storage, and management. The products include hydrogen gas turbines, renewable energy management products, gas engines, and power management. Distributed power plants, municipal incineration plants are some other product lines in energy solution & plant engineering segment. The marine engineering segment produces submarines and LPG/LAG carrier ships.
Precision Machinery & Robot
Kawasaki manufactures hydraulic machinery used in construction & agricultural machinery, industrial machinery, and ships. Kawasaki manufactures pumps, motors, valves, and various hydraulic machinery, as well as it assembls hydraulic systems with electric controller, serve the important function of powering and regulating a wide range of machinery and systems. As a manufacturer of industrial robots, Robot Division provides various industries, including the automotive and electronics industries, with many robots for use in welding, assembly, handling, painting, and palletization.
Motorcycle & Engine
Kawasaki Motors, Ltd. is the sole division of Kawasaki that provides products directly to general consumers. The company manufactures a broad range of products, including motorcycle, off-road four wheeler, watercraft "JET SKI®", and general-purpose gasoline engines; and supplies them to markets around the world.
The products of the company can be broadly divided into four categories - Mobility, Energy, Industrial Equipment, and Leisure.
Under this category, the company product Air products, Rail products, and Marine products. The air products include aircrafts, helicopters, space products, aircraft engines & related equipment. Rail products include railcar models 640, R211 Subway Car, Mass Rapid Transit System in Bangladesh, Dhaka MRT Line-6 etc. Marine products are categorized into three divisions - ships, marine machinery and JET SKI®. The ship segment include products like LNG Carriers, Submarines & Governmental Ships, LPG Carriers, Oil Tankers, Bulk Carriers, Car Carriers & RO/RO Ships, Containers Ships, and LNG Floating Power Plant. Marine machinery segment include products like Marine Steam Turbine, Turbocharger, Marine Boiler, Air Cooler and others. Watercraft JET SKI® has three models ULTRA, STX, and SX-R.
This category include products of cogeneration, energy plants, gas turbines, and gas engines.
Under this category, the company produces Hydraulic Components & Systems, Robotics, and Industrial Solutions. Under industrial solutions again, there are industrial plants, material handling system, defense & securities systems, large-size structures, and oil & gas facilities.
In this segment, the company produces Motorcycles, and off-road four wheelers. Recently, the company has introduced ULTRA 160LX and ULTRA 160LX-S JET SKI MODELS, Ninja ZX-4R Full-Fairing Four-Cylinder Supersport, and Kawasaki's first electric and hybrid motorcycles.
Kawasaki's origins go back to 1878, when Shozo Kawasaki established Kawasaki Tsukiji Shipyard in Tokyo. Eighteen years later, in 1896, it was incorporated as Kawasaki Dockyard Co., Ltd. Kawasaki Dockyard was originally established in 1886. In 1894, after seven years of its establishment, the Sino-Japanese war started that presented a prosperity to the ship-building industry. Shozo Kawasaki received many orders of ship-repairing, soon realizing the limited scope of private limited company he decided to take the company public. Kawasaki being without a son to inherit his position has chosen Kojiro Matsukata as the president of the company, who served 32 years until 1928.
In 1897, Kawasaki Dockyard completed a cargo-passenger ship, Iyomaru (727 GT), its first ship after becoming a publicly traded company. During the 10 years of private management between 1886 and 1896, the Company built 80 new ships, including six steel ships such as Tamamaru (about 570 GT). Since the first steel ship was built in Japan in 1890, ship material had rapidly modernized from iron to steel. The company realized the necessity for a bigger dockyard and completed construction of a dry dock beside Kobe Shipyard in 1902. The president of the company decided to expand to new business areas - in manufacturing railway cars. In 1906, the newly opened Hyogo Works began fabrication of locomotives, freight and passenger cars and bridge girders. During the same year, the company also began production of marine steam turbines at its dockyard. Also in that year, the company has built first two submarines of Japan produced domestically by executing the orders of the Navy - Submarines No. 6 and 7. In 1908, Kawasaki Dockyard builds the Yodo, Japan's first large-size warship built by a private Japanese shipyard.
In the endeavor to expand the business to new product lines, Kawasaki started manufacturing rolling stock in 1907, and 4 years later produced its first steam locomotive, the Tender type locomotive (2B saturation steam type, No.6700-6704), for the Ministry of Railways.
In London at the time, Matsukata was impressed by the use of airplanes in World War I and established the Aircraft Department at the Hyogo Works in 1918. It was just a short 15 years since the Wright brothers' historic flight when airplanes were still made from wood and cloth and could only travel short distances. In 1922, the Company began manufacturing aircraft and established a new aircraft plant.
Kawasaki went on to build Japan's first metal aircraft, thereby laying the groundwork for the technological innovations of today.
In 1919, the shipping division is spun off and incorporated as Kawasaki Kisen Kaisya Ltd. (K-line). In 1922, Kawasaki completed its first airplane at its Hyogo works, and conducted test flights in Sohara Village.
In 1923, the Great Kanto Earthquake hit Tokyo and bridges across the Sumidagawa River collapsed. Kawasaki constructed replacement bridges such as the Kiyosubashi Bridge, Shirahigebashi Bridge and Eitaibashi Bridge, which became well known for their elaborate designs. Kawasaki utilized state-of-the-art technology for these bridges. For example, it adopted high-tensile steel (Ducol steel), made at the Company's Hyogo Works, for the first time in Japan for the upper cables of the Kiyosubashi, an elegant suspension bridge, and for the lower connections of the Eitaibashi, a massive steel arch bridge. In that era, Kawasaki received orders from the Earthquake Reconstruction Bureau and other organizations in Japan for 25 bridges in total, including the bridges mentioned above, requiring 16,000 tons of steel. Kawasaki also constructed the Kachidokibashi Bridge across Sumidagawa River. The leaf-lift (trunnion bascule) bridge is built on a model of the same type of drawbridge in Chicago. The bascules, which hold the bridge center of 44 meters, can raise to a maximum of 70 degrees, making large ship traffic possible. In 1928, the Hyogo Works is spun off and incorporated as Kawasaki Rolling Stock Manufacturing Co., Ltd.
In 1931, the prototype of a 1.5 ton truck was completed based on a U.S. deluxe model, and the next year Kawasaki started producing Rokkogo trucks and buses. In 1933, it also began manufacturing classy Rokkogo passenger cars for such customers as the Imperial family.
In 1937, the company spun off the aircraft division and incorporated it as Kawasaki Aircraft Co., Ltd. In 1939, the company adopts the current name Kawasaki Heavy Industries (Kawasaki Jukogyo Kabusikigaisya), which is to survive after the merger of three companies in 1969.
During World War II, the Company (Kawasaki Aircraft) manufactured the type 3-1 fighter Hien, the only liquid-cooled fighter developed in Japan during the war.
In 1950, the steelmaking division of the company is spun off and incorporated under the name Kawasaki Steel Corporation. In 1952, the company begun production of Bell 47D helicopters.
In 1969, Kawasaki Dockyard, Kawasaki Rolling Stock Manufacturing and Kawasaki Aircraft merge to become Kawasaki Heavy Industries, Ltd. During the same year, the company develops Kawasaki-Unimate 2000, the first Japan-made industrial robot; also the motorcycle H1 was launched. In 1972, the company unveils Z1 motorcycle.
|1972||The company merges with rolling stock company Kisha Seizo Co., Ltd., and forms Kawaju Reinetsu Service Co., Ltd.|
|1973||Kawasaki begins selling Jet Ski® watercraft.|
Begins production of motorcycles in the U.S.
|1976||The company develops GPS200 gas turbine generator.|
|1981||Kawasaki delivers the first LNG carrier built in Japan.|
|1986||Begins production of rolling stock in the U.S.|
|1988||Begins production of construction machinery in the U.S.|
|1989||Receives orders for construction work on the Akashi Kaikyo Bridge.|
|1996||The company celebrates its 100th anniversary.|
Kawasaki Shipbuilding Corporation and Kawasaki Precision Machinery Ltd. are established as wholly owned subsidiaries.
|2004||The Taiwan Shinkansen Corporation (TSC), comprising seven Japanese companies including Kawasaki, shipped the Taiwan High Speed Rail Corporation its first 12-car high-speed train.|
Kawasaki Plant Systems, Ltd. (K Plant) is established as a wholly owned subsidiary.
Kawasaki Environmental Engineering, Ltd. (KEE) is established as a wholly owned subsidiray.
Rolls out test planes for the XP-1 fixed-wing maritime patrol aircraft and XC-2 transport aircraft
Kawasaki Shipbuilding Corporation, Kawasaki Precision Machinery Limited (KPM) and Kawasaki Plant Systems, Ltd. (K Plant) are re-merged into Kawasaki Heavy Industries, Ltd.
Established Medicaroid Corporation, a marketing company for the development of medical robots, jointly with SYSMEX CORPORATION.
|2018||Kawasaki's US plant completes first commercial aircraft cargo doors for Boeing.|
|2021||Kawasaki Railcar Manufacturing Co., Ltd. and Kawasaki Motors, Ltd. are established as wholly owned subsidiaries.|
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