KWHIY Kawasaki Heavy Industries Ltd (PK)

By Kosaku Narioka

Shares of Japanese jet-engine partners fell sharply Tuesday after RTX said it will cost up to $7 billion to repair Pratt & Whitney engines and compensate airlines for fixes.

IHI shares were recently down 15%, Kawasaki Heavy Industries was 6.0% lower and Mitsubishi Heavy Industries shed 4.7%.

Contamination in the metal used to make some parts in Pratt & Whitney's geared turbofan engine could cause cracks to form, RTX has said. The three Japanese companies have stakes in Pratt & Whitney's geared turbofan engine program.

RTX said Monday that it will remove about 600 to 700 Pratt engines for inspection over the next three years. The aerospace and defense company also said its profit will take up to a $3.5 billion hit from the recall over the next several years.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

September 12, 2023 01:26 ET (05:26 GMT)

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