Japanese corporations Kawasaki Heavy Industries (KHI) and IHI Corporation have outlined plans to increase flagging defence sales over the next few years. In recent shareholder briefings the two companies put emphasis on developing new products, particularly for the military aerospace domain, and on expanding their respective foreign profiles.
In fiscal year (FY) 2018, KHI's two defence-related business units - aerospace and shipbuilding - reported 1% and 17% year-on-year decreases in net sales respectively and IHI's aerospace and defence division posted a 23% decline in operating income. IHI's defence sales fell but commercial aerospace sales enabled growth in division revenues.
The defence-related business units of KHI and IHI account for about one-third of group revenues for each corporation, although these business units are also heavily involved in commercial sectors.
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