Business Description

Kawasaki Heavy Industries, Ltd. manufactures industrial equipment and transportation equipment. Shozo Kawasaki founded the company in April 1878. It is located in Kobe, Japan. It operates in the following segments: Motorbike and engine; Aerospace system; Energy and Environmental Plant; Ship Ocean; Vehicle, Precision Machines, and Robots; and Other. Aerospace manufactures and sells jet engines and aircraft. The Energy and Environmental Plant segment manufacture and sells industrial prime-movers, boilers, gas turbines, industrial machinery, boilers, and environmental equipment.

It also offers crushers and steel structures. The Vehicle segment deals in the sale and manufacture of railroad vehicles. The motorcycle and engine segment deals in the sale and manufacture of four-wheeled buggy vehicles (ATVs), versatile four-wheeled vehicles, personal watercraft (jetskis), and general-purpose gasoline engines. The other segment deals in the brokerage and mediation of orders, commerce, and sales.  The Precision Machines and Robots section deals in the production and sale of industrial robots and hydraulic equipment. Ship Ocean is involved in the sale and manufacture of ships.

Key Financials

 Revenue (US$ Mn)

• US$ 10,867 Mn was the annual revenue generated by Kawasaki Heavy Industries, Ltd. in 2021
• Kawasaki Heavy Industries, Ltd.’s annual revenue for 2020 was US$ 13,975 Mn, a -7.54% decrease from 2019
• From 2018’s annual revenues, Kawasaki Heavy Industries, Ltd. registered a 4.91% increase in 2019, amounting to US$ 15,115 Mn
• Total revenue of US$ 14,407 Mn was generated in 2018 by Kawasaki Heavy Industries, Ltd.

 

Operating Income (US$ Mn)

• Kawasaki Heavy Industries, Ltd.’s operating income for 2021 was US$ 39 Mn, a -177.71% decrease from 2020
• The operating income generated by Kawasaki Heavy Industries, Ltd. in 2020 was US$ -50 Mn
• At a -1.19% decrease from , Kawasaki Heavy Industries, Ltd.’s operating income of US$ 572 Mn was indexed in 2019
• Kawasaki Heavy Industries, Ltd. generated an operating income of US$ 578 Mn in 2018

 

Net Income (US$ Mn)

• Kawasaki Heavy Industries, Ltd.’s net income for 2021 was US$ 1 Mn, a -100.46% decrease from 2020
• The net income generated by Kawasaki Heavy Industries, Ltd. in 2020 was US$ -182 Mn
• At a -30.69% decrease from , Kawasaki Heavy Industries, Ltd.’s net income of US$ 172 Mn was indexed in 2019
• Kawasaki Heavy Industries, Ltd. generated a net income of US$ 248 Mn in 2018

 

Operating Margin %

• Kawasaki Heavy Industries, Ltd.’s operating margin for 2021 was %, a -175% decrease from 2020
• The operating margin generated by Kawasaki Heavy Industries, Ltd. in 2020 was %
• At a -5% decrease from , Kawasaki Heavy Industries, Ltd.’s operating margin of 4% was indexed in 2019
• Kawasaki Heavy Industries, Ltd. generated an operating margin of 4% in 2018

 

Net Margin %

• 13% was the gross margin generated by Kawasaki Heavy Industries, Ltd. in 2021
• Kawasaki Heavy Industries, Ltd.’s gross margin for 2020 was 14%, a -14.55% decrease from 2019
• From 2018’s gross margins, Kawasaki Heavy Industries, Ltd. registered a -1.79% decrease in 2019, amounting to 17%
• A gross margin of 17% was generated in 2018 by Kawasaki Heavy Industries, Ltd.

 

SWOT Analysis

Strengths

Research and Development (R&D) activities

KHI is a strong believer in research and development (R&D). This allows KHI to grow its product range and improve its functionality, safety, quality, and environmental compatibility. R&D within the group focuses on developing new products and processes and improving existing products’ capabilities.

KHI’s corporate R&D organization includes the Technical Institute, the System Technology Development Center, as well as Kawasaki Technology. This organization collaborates with different divisions of KHI Group and contributes to product development and improvement by using fundamental and system technology. The company spent JPY52 608 million in FY2020 on research and development.