Mitsui Engineering lowers 2016 forecast

Big losses from the construction of four ships hurt the Japanese shipbuilder in the first nine months to December.

Mitsui Engineering & Shipbuilding (MES) has lowered its forecast for the financial year 2016 as it recognized big losses in the third quarter.

The company explained that one of its subsidiaries has suffered a deficit of JPY 3.8bn ($31.8m) from the construction of four offshore support vessels due to repeated changes and problems.

As a result, MES saw its profit for the nine months to the end of December chopped by 73% to JPY 2.5bn.

Earnings fell despite an increase in revenue which ran to JPY 587.6bn from JPY 557.9bn.

MES said it is now expecting a full year profit of JPY 6bn compared to previous projections of JPY 13bn.

The company booked net income of JPY 9.5bn for 2014.