Mitsubishi Heavy Industries (MHI) has taken a one-off charge related to the powder metal contamination issue of the Pratt & Whitney PW1100G-JM Geared Turbofan. The Japanese industrial giant included the charge in its HY1 results but hasn’t specified the value.
MHI is responsible for the design and manufacturing of the combustor of the PW1100G-JM, hence the ‘J’ in the engine model. P&W parent RTX estimates the gross impact of the issue between $6.0 to $7.0 billion, which has to be shared by the different shareholders of the program. Pratt & Whitney
has a 51 percent share and has taken a pre-tax charge of $3.0 billion. MTU Aero Engines owns 18 percent and will take a $1.0 billion charge. Kawasaki Heavy Industries has a 5.8 percent share and announced a ¥ 58 billion ($406 million) charge.
The exact share of MHI in the GTF program isn’t known but should be around 25 percent. This would result in a total charge of between $1.6 to $2.6 billion, but this isn’t clear from the company’s financial statements for HY1 that were released on Tuesday.
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