JAPANESE shipbuilder Mitsubishi Heavy Industries (MHI) incurred damages of 34 billion yen (about HK$3.15 billion) in the wake of the January earthquake in Kobe, company sources said.
They said MHI planned to book extraordinary losses of 26 billion yen for fiscal year ended March 31.
Pre-tax profits for the year are expected to rise 17 per cent to about 140 billion yen.
But after-tax profits are likely to fall five per cent to about 69 billion yen, far short of the 80 billion yen predicted at the mid-year stage.
MHI said it estimated exchange losses of about 17 billion yen if the US dollar stayed below 90 yen.
Of the losses, 80 billion yen was for repairs at MHI'sKobe shipyard; 4.5 billion yen from suspension of factory operations; one billion yen from lost assets; and one billion yen from compensation payments to employees.
