Mitsubishi Heavy Industries Ltd. said Wednesday that its group net profit jumped 29.8 percent in fiscal 2002 to 34.33 billion yen.
Cost-cutting efforts and more selective order-taking helped offset a decline in sales, the firm said. The nation's largest heavy machinery maker builds freighter tankers, turbines for electric plants and fighter jets.
Group operating profit soared 46.6 percent to 115.31 billion yen, on revenue of 2.59 trillion yen, down 9.4 percent.
MHI said that the economic slump, which hit private sector investment, continued to drag down revenue generated by its shipbuilding, generator and other units, apart from aerospace.
But better cost-management efforts helped the firm secure an increase in profit, company officials said.
The firm said it took a 13 billion yen charge to cover costs related to the fire damage suffered in October by a luxury liner under construction at an MHI shipyard in Nagasaki Prefecture.
The loss is equivalent to the amount not covered by insurance payments.
The officials refused to disclose the total cost of the damage. The company said it expects the business environment to be severe throughout fiscal 2003.
It expects its group sales to fall to 2.4 trillion yen, and its group net profit to edge up to 35 billion yen.