IHI (IHICF) Q2 2024 Earnings Report

The earnings call revealed significant challenges, including large one-time losses and decreased operating profit, overshadowing some growth in the Aero Engine and Defense business and stability in large plant projects.

During the IHI Group's second-quarter earnings call for the fiscal year 2023, several key metrics and financial figures were discussed. The group reported a one-time loss primarily due to the PW1100G engine inspection program and North America process plant litigation settlement, leading to an operating profit of negative JPY 157 billion. Excluding special factors, the orders received were JPY 640 billion, and revenue was JPY 639 billion, with an operating profit of JPY 16 billion. The foreign exchange rate averaged JPY 140.62 to the U.S. dollar, reflecting a JPY 9 depreciation from the previous year. The company's total assets increased by JPY 111.3 billion, reaching JPY 2,053.3 billion, while interest-bearing debt rose to JPY 644.7 billion. The debt-equity ratio was 1.98x, with a 14.5% ratio of equity attributable to the owners of the parent. Operating cash flow stood at JPY 81.4 billion, while free cash flow was negative JPY 112.8 billion. The guidance emphasized the need for improving cash flow and working capital, aiming to recover to the fiscal 2022 financial foundation with a focus on enhancing profitability and maintaining dividend payouts.