Japan's IHI, Kawasaki Heavy expect hit from GTF engine issue (updated)

Kawasaki Heavy Industries

12/09/2023 10:07

(Updates throughout with background, Kawasaki Heavy statement;
Changes keyword for media clients from IHI-RESULTS/)
       TOKYO, Sept 12 (Reuters) - Japan's IHI  7013.T  and
Kawasaki Heavy Industries  7012.T  said on Tuesday they expect
an earnings hit from the lengthy quality inspections announced
by Pratt & Whitney parent RTX Corp  RTX.N  for the Geared Turbo
Fan (GTF) engine system.
    A day earlier, RTX took a $3 billion charge and told
airlines that hundreds of their Airbus jets would be grounded at
any one time in coming years to check for a rare manufacturing
flaw.
    IHI, which controls about 15% of the GTF programme, said it
was in the process of working out the impact to revenues and
operating profit. IHI and Kawasaki Heavy issued separate
statements saying they would disclose the expected impact as
soon as they can.
    German partner MTU Aero Engines  MTXGn.DE , which controls
18% of the programme, has said it might have to bear 1 billion
euros in extra costs but that it was too early to say how
financial goals would be affected.

 (Reporting by Tokyo Newsroom; Editing by Muralikumar
Anantharaman)
 ((kaori.kaneko@thomsonreuters.com;))