The Machinery Group handles machinery across many different sectors, ranging from large-scale plants for power generation or for production of natural gas, petroleum, chemicals or steel, to ships, railway systems, automobiles, and aerospace equipment, as well as mining and industrial machinery. Leveraging our knowledge and customer network across these fields, we aim to expand value chains spanning finance, distribution and our extensive business investments.
Midterm Corporate Strategy 2012 Targets and Progress
Under Midterm Corporate Strategy 2012, the group's goal is to generate business by grasping market and customer needs based on the connections we can forge between customers, manufacturers and business partners across a diverse range of industries, while at the same time seeking to enhance MC's core competences. We have defined the four key domains for the Machinery Group as (1) social infrastructure, including power generation, transport and ports, (2) resources and energy, (3) shipping, and (4) motor vehicles. We are working to reinforce our existing operations and to create new businesses.
In the infrastructure domain, MC is involved in on-site (inside-the-fence) power generation as well as emerging businesses such as undersea power cabling. In the shipping domain, we are building a business portfolio to generate stable income streams from the four pillars of trading, finance, fleet ownership and offshore operations.
In motor vehicles, MC has been involved in developing related businesses across Asia for many years. In Indonesia, one of our most critical markets, we work in partnership with Mitsubishi Motors Corporation (MMC) and with Mitsubishi Fuso Truck & Bus Corporation. We are also developing businesses in China, Russia and other countries with MMC. Finally, our Isuzu Business Division has been supporting the sale of Isuzu vehicles for over 50 years in Thailand as well as other ASEAN nations and Australia.
We posted net income of ¥61.4 billion in the year ended March 2011, which was ¥43.3 billion higher year on year. This large earnings increase resulted from the absence of share write-downs recorded in the previous fiscal year, as well as strong performances in automobile operations, especially in Asia.
Business Environment and Outlook for Year Ending March 2012
We expect the business environment in the year ending March 2012 to remain different for each field and market. We expect harsh business conditions due to the impact of a strong yen, increased competition with overseas players and the effects of the Great East Japan Earthquake, among other factors. We will focus on tapping strong demand in overseas markets, especially within the developing world, through the steady implementation of our detailed plans.
For the year ending March 2012, we are projecting net income of ¥45.0 billion.