Kawasaki Heavy Keeps Outlook, Passing Extra Costs to Customers

Kawasaki Heavy Industries Ltd. maintained profit guidance despite the impact of US tariffs, as Japan’s second-largest defense contractor expects to offset rising expenses with price hikes and controlling fixed costs.

The company projects tariff-related impact of ¥18 billion ($122 million) this fiscal year, largely hurting its mainstay power-sports and engine unit. Kawasaki Heavy expects ¥8.3 billion of that to be offset by passing on costs to customers, Chief Financial Officer Katsuya Yamamoto said in an earnings call Wednesday. The company began raising prices in June, he added.