Recognition of Non-operating Income (Share of Profit of Investments Accounted for Using the Equity Method) in Consolidated Financial Results, Recognition of Extraordinary Loss (Impairment Loss on Shares of Affiliated Companies) in Standalone Financial Results, and Variance from Previous-Year Results in Standalone Results for the Fiscal Year Ending March 2026
Mitsui E&S Co., Ltd. (filing company), consolidated subsidiary Mesco Denmark A/S, and equity-method affiliate (name: Not disclosed)
Shares in Mesco Denmark A/S. Regarding the variance in results: large marine engines, dual-fuel engines and container cranes.
The results of an equity-method affiliate were reflected in the financial results. The substantial value of the shares in Mesco Denmark A/S declined. Regarding the standalone financial results, the causes were higher sales of large marine engines and dual-fuel engines, steady progress on major container crane projects, improved project profitability across the businesses, recognition of an impairment loss on shares of affiliated companies, and recognition in the previous fiscal year of more than ¥40 billion in gains on the sale of shares of affiliated companies.
¥7.5 billion in share of profit of investments accounted for using the equity method was recognized as non-operating income. ¥7.2 billion in impairment loss on shares of affiliated companies was recognized as an extraordinary loss. The impairment loss on shares of affiliated companies is eliminated in the consolidated financial results and has no impact on consolidated results.
Fiscal year ending March 2026
| Item | Details |
|---|---|
| Event name | Recognition of Non-operating Income (Share of Profit of Investments Accounted for Using the Equity Method) in Consolidated Financial Results, Recognition of Extraordinary Loss (Impairment Loss on Shares of Affiliated Companies) in Standalone Financial Results, and Variance from Previous-Year Results in Standalone Results for the Fiscal Year Ending March 2026 |
| Subject Entity | Mitsui E&S Co., Ltd. (filing company), consolidated subsidiary Mesco Denmark A/S, and equity-method affiliate (name: Not disclosed) |
| Target Locations / Products | Shares in Mesco Denmark A/S. Regarding the variance in results: large marine engines, dual-fuel engines and container cranes. |
| Cause | The results of an equity-method affiliate were reflected in the financial results. The substantial value of the shares in Mesco Denmark A/S declined. Regarding the standalone financial results, the causes were higher sales of large marine engines and dual-fuel engines, steady progress on major container crane projects, improved project profitability across the businesses, recognition of an impairment loss on shares of affiliated companies, and recognition in the previous fiscal year of more than ¥40 billion in gains on the sale of shares of affiliated companies. |
| Amount of Impact on Business Performance | ¥7.5 billion in share of profit of investments accounted for using the equity method was recognized as non-operating income. ¥7.2 billion in impairment loss on shares of affiliated companies was recognized as an extraordinary loss. The impairment loss on shares of affiliated companies is eliminated in the consolidated financial results and has no impact on consolidated results. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
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These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The share of profit of investments accounted for using the equity method was recognized to reflect the results of an equity-method affiliate. An impairment loss was recognized on the shares of Mesco Denmark A/S because their substantial value had declined. In the standalone financial results, net sales, operating income and ordinary income increased due to higher sales of large marine engines and dual-fuel engines, progress on major container crane projects, and improved project profitability across the businesses. However, net income declined due to the recognition of an impairment loss on shares of affiliated companies and the reversal of the effect of more than ¥40 billion in gains on the sale of shares of affiliated companies recorded in the previous fiscal year.