9:00AM New York - Mitsubishi Heavy Industries net sales increased by 78.9 billion yen to 2.1 trillion yen after orders rose to 2.41 trillion yen from 2.01 trillion yen a year ago.

Quarterly Earnings Growth

Mitsubishi Heavy Industries reported third quarter net sales rose 4% to 2.1 trillion yen from 2.01 trillion yen a year ago thanks to the weaker yen and sales volume growth of 30% in Asia, 18% in Europe and 26% in North America. A weaker yen and improved profitability also helped offset rising material costs.

In the third quarter, net income increased 41% to 54.2 billion yen from 38.4 billion yen a year ago as rising orders helped profitability.

The company’s operating income increased to 93.9 billion yen from 73.7 billion yen a year ago.

Revenue

Mitsubishi Heavy orders rose by 403.5 billion yen in the quarter under review driven by increase in the Power System segment, mainly sales of wind turbines in the U.S. and improved orders for overseas large thermal electric power plants.

Power System sales generated 628 billion yen from 600 billion yen a year ago.

Furthermore, sales in the Machinery and Steel Structures segment fell to 286 billion yen from 314 billion yen a year ago. Multiple agreements for large chemical plant projects were sealed.

Third quarter sales in the Shipbuilding and Ocean Development segment slipped to 192 billion yen from 196 billion yen.

The Aerospace division’s sales climbed to 305 billion yen from 281 billion last year.

During the quarter, shipments to the Middle East advanced 12% to 123 billion yen, while North America rose 26% to 274 billion yen.

In addition, exports to Asia and Europe rose 30% from a year ago to 317 billion yen and 18% to 192 billion yen, correspondingly.

Outlook

Mitsubishi Heavy forecasts that net sales for the full year will rise to 3.2 trillion from 3.1 trillion initially projected in October.

Full-year net income is also expected to grow to 60 billion yen from 54 billion yen forecasted earlier.

Annual orders are projected to rise to 3.5 trillion yen from the 3.3 trillion yen target set in October.