Mitsui Targets 64 Percent Profit Gain
Mitsui Engineering & Shipbuilding Co., 's second-largest shipbuilder by sales, forecast profit will rise 64 percent in three years, aided by record demand. The shares gained the most in two weeks, Bloomberg reported.
Operating profit may reach $534min the year through March 2011, from 33 billion yen estimated for the year just ended, the Tokyo-based company said today in a statement. Sales are forecast to rise 27 percent to 800 billion yen in three years. No net income targets were given.
Mitsui Engineering, with a three-year order backlog, said today it will accelerate spending to expand production capacity. The company is counting on rising sales of its vessels to counter higher steel costs and a stronger yen that would erode the value of overseas earnings.
Mitsui Engineering based the currency exchange rate of 105 yen to the dollar for the three-year plan. The yen recently traded at 101.34 yen to the dollar in .
The Japanese company will spend 53 billion yen on capital expenditure over the three years ending March 31, 2011, 37 percent higher than in the previous three years. Research and development costs will increase 68 percent to 21 billion yen, mostly for new businesses.
Mitsui Engineering, Mitsui & Co., Inpex Holdings Inc. and six other partners, are studying the feasibility of turning natural gas into frozen pellets, making the fuel easier to ship.