TOKYO, Oct 31, 2018 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has decided to increase the capitalization of Mitsubishi Aircraft Corporation (Mitsubishi Aircraft), a wholly owned MHI Group company, as it nears the first delivery of the Mitsubishi Regional Jet (MRJ), the industry's only clean sheet regional aircraft.
The decision by MHI to increase its investment in Mitsubishi Aircraft has two objectives: first, to add 170 billion yen to the company's capital, and second to cancel 50 billion yen of the total debt owed by Mitsubishi Aircraft to MHI. The added capital will bring Mitsubishi Aircraft out of its capital deficit and provide the company with funds to enable continued development of the MRJ.
As of March 31, 2018, the company's liabilities exceeded assets by 110 billion yen. With the 170 billion yen to be acquired from MHI, Mitsubishi Aircraft will allocate 85 billion yen to its capital and an equal amount to its capital reserve. Simultaneously, MHI will cancel 50 billion yen of the total debt owed to it by Mitsubishi Aircraft. The infusion of 170 billion yen will increase Mitsubishi Aircraft's paid-in capital from 100 billion yen to 270 billion yen.
The capital infusion from MHI will be allocated mainly to development of the MRJ90 and to future expenditures borne by MHI in preparation for commercialization.
Business results and the financial status of MHI's Group companies are continuously factored into the Company's consolidated financial statements. The capital increase in Mitsubishi Aircraft indicated here will have no impact on MHI's consolidated results.
About Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries (MHI) Group is one of the world's leading industrial firms. For more than 130 years, we have channeled big thinking into solutions that move the world forward - advancing the lives of everyone who shares our planet. We deliver innovative and integrated solutions across a wide range of industries, covering land, sea, sky and even space. MHI Group employs 80,000 people across 400 locations, operating in three business domains: "Power Systems," "Industry & Infrastructure," "Aircraft, Defense & Space." We have a consolidated revenue of around 40 billion U.S. Dollars. We aim to contribute to environmental sustainability while achieving global growth, using our leading-edge technologies. By bringing people and ideas together as one, we continue to pave the way to a future of shared success.
For more information, please visit MHI's website: https://www.mhi.com
For Technology, Trends and Tangents, visit MHI's new online media SPECTRA: https://spectra.mhi.com
Corporate Communication Department
Mitsubishi Heavy Industries, Ltd.
Email: [email protected]
Source: Mitsubishi Heavy Industries, Ltd.
Topic: Press release summary
Sectors: Aerospace & Defence
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