Restructuring of the MRJ business and strengthening efforts toward mass production
First written in FY2018. 5 of 11 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2023.
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- FY2023DroppedAnnual report
「The SpaceJet business, for which development has been discontinued, was previously included in Aircraft, Defense & Space. Beginning with the current consolidated fiscal year, it has been excluded from the reportable segments, and the income or loss attributable to the business is included in Corporate and eliminations.」
The previous business restructuring policy aimed at SpaceJet mass production and type certification ended when development activities were discontinued. In fiscal 2022, the Company also recorded ¥5,869 million in various losses associated with the discontinuation of development. - FY2022No material impairment loss for the full yearAnnual report
「No material impairment loss arose during the consolidated fiscal year.」
Although the situation in which future SpaceJet cash flows could not be reliably estimated continued, no material impairment loss arose in fiscal 2021. In addition, operating profit in the Aviation, Defense & Space segment improved to ¥20,050 million. - FY2022-Q2No material impairment loss in the quarterAnnual report
「Although the situation in which future cash flows from this business could not be reliably estimated continued, no material impairment loss arose during the second-quarter consolidated cumulative period.」
Although the situation in which future SpaceJet cash flows could not be reliably estimated continued, no material impairment loss arose during the second-quarter cumulative period. - FY2022-Q1No material impairment loss in the quarterAnnual report
「Although the situation in which future cash flows from this business could not be reliably estimated continued, no material impairment loss arose during the first-quarter consolidated cumulative period.」
Although the situation in which future SpaceJet cash flows could not be reliably estimated continued, no material impairment loss arose during the first-quarter cumulative period. - FY2021WorsenedAnnual report
「As it remained difficult to forecast the delivery timing of the first mass-produced SpaceJet at the end of the consolidated fiscal year, the Company followed the accounting treatment applied in the previous consolidated fiscal year and recorded an impairment loss of ¥80,599 million.」
The timing of mass production remained unforeseeable even after development activities were slowed, and the Company recorded an impairment loss of ¥80,599 million on SpaceJet-related assets. It also fully impaired ¥47,950 million of goodwill arising from the acquisition of the CRJ business. - FY2021-Q2WorsenedAnnual report
「In October 2020, in light of the destabilization of the commercial aircraft market due to the global COVID-19 pandemic, the Company announced that it would slow SpaceJet development activities. As it remained difficult to forecast the delivery timing of the first mass-produced SpaceJet at the end of the second quarter of the consolidated fiscal period, the Company followed the accounting treatment applied in the previous consolidated fiscal year and recorded an impairment loss of ¥64,690 million.」
Following the slowdown in SpaceJet development activities and the uncertainty surrounding the delivery timing of the first mass-produced aircraft, the Company recorded an impairment loss of ¥64,690 million during the second-quarter cumulative period. - FY2021-Q1WorsenedAnnual report
「During the first quarter of the consolidated cumulative period, following the February 2020 announcement that delivery of the first mass-produced aircraft was expected to be postponed until fiscal 2021 or later, the Company followed the accounting treatment applied in the previous consolidated fiscal year, under which the assets were fully impaired, and recorded an impairment loss of ¥56,318 million.」
In connection with the SpaceJet mass-production plan, the Company recorded an additional impairment loss of ¥56,318 million in the first quarter. The financial impact of the delayed delivery of the first mass-produced aircraft continued. - FY2020WorsenedAnnual report
「During the consolidated fiscal year, the Company announced in February 2020 that delivery of the first mass-produced aircraft was expected to be postponed until fiscal 2021 or later. As a result, it recorded an impairment loss of ¥176,073 million after deciding to impair the business-use assets, including those recognized as assets by the end of the previous consolidated fiscal year.」
The SpaceJet mass-production plan receded further, and the Company recorded an impairment loss of ¥176,073 million on related business-use assets during the fiscal year. - FY2020-Q3WorsenedAnnual report
「At the end of the third quarter of the consolidated fiscal period, the Company announced in February 2020 that delivery of the first mass-produced aircraft was expected to be postponed until fiscal 2021 or later. As a result, it recorded an impairment loss of ¥104,553 million after deciding to impair the business-use assets, including those recognized as assets by the end of the previous fiscal year.」
The SpaceJet mass-production plan deteriorated further, with disclosure of another delay in the delivery schedule and impairment of business-use assets, representing a deterioration from the previous explanations of progress toward mass production and type certification. - FY2019AdvancedAnnual report
「Development of the MRJ has entered the final flight-testing stage, and the Company will continue to devote every effort to obtaining type certification. It will also ensure that a customer support structure is fully in place for delivery of the first mass-produced aircraft, while seriously pursuing the establishment of an optimal mass-production structure that can generate further synergies within the Group, as well as development of the main model for the North American market and enhancement of its service structure.」
The Company stated that MRJ development had entered the final flight-testing stage and continues to pursue type certification, a mass-production structure, customer support and the main model for the North American market. - FY2018First statedAnnual report
「To reinforce the long-term sustainability of the MRJ business, during the period of the “2018 Business Plan” the Company will also pursue fundamental strengthening measures, including a capital increase for Mitsubishi Aircraft Corporation, promoting collaboration with the commercial aircraft business toward mass production, and accelerating development of the main model for the North American market, the MRJ70.」
In addition to obtaining type certification for the MRJ and delivering the first mass-produced aircraft in mid-Heisei 32, the Company has newly made specific business restructuring measures, including a capital increase for Mitsubishi Aircraft, collaboration with the commercial aircraft business, and development of the MRJ70.