WGN 777 Boeing scaled
Increased demand for Boeing full-freighters and Bombardier business jets have pushed order intakes up at Mitsubishi Heavy Industries (MHI). The Aerostructures business received ¥67.6 billion in orders in HY1 of the financial year 2022 compared to ¥57.4 billion in the same period last year, MHI said in its HY1 earnings presentation on November 1. Mitsubishi benefits from demand for Boeing freighters.
Mitsubishi doesn’t specify the numbers, but Boeing reported orders for forty full freighters since March. These include seventeen 777Fs for DHL Express, FedEx, EVA Air, Lufthansa, and Western Global, plus fourteen for undisclosed customers. Lufthansa also ordered seven 777-8Fs in May. UPS placed an order for eight 767-300Fs in August. In October, Cargolux placed an order for twelve 777-8Fs that will appear in the October backlog.
MHI also produces segments for the Bombardier Global 5000 and 6000 business jets. The Canadian airframer hasn’t released numbers on orders, but reported strong order intake in Q2 and has a backlog of C$14.7 billion. Bombardier will release its Q3 results on Thursday.
The higher order intake wasn’t evident in Mitsubishi’s third-quarter deliveries. Not a single unit was delivered to Boeing for the 777, 777X, and 787, which compares to six, one, and four in Q3 2021. In the year to date, MHI has shipped just 13 777 units to Everett (2021: 20), one 777X unit (4), and 12 787s (25). In the second quarter, Mitsubishi delivered twelve shipsets. Boeing has paused 777X production until the end of 2023 and is producing the 787 at very low rates.
Including Defense and Space, MHI’s order intake for Aircraft, Defense and Space were ¥207.7 billion, up from ¥178.1 billion last year. Revenues were ¥262.3 billion (¥247.3 billion) and the profit was ¥17.6 billion, up from ¥7.6 billion. The Japanese company maintains its guidance for the full-year order intake at ¥650 billion, but revenues are expected to be ¥60 billion lower than previously guided at ¥600 billion, and profit even ¥10 billion down to ¥20 billion.
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