Shipbuilding dragged down Mitsubishi Heavy Industries' (MHI) financial year 2013 results, as its former Shipbuilding and Ocean Development segment posted a negative JPY5.5bn ($54m) operating income.

Orders received by the old segment dropped by JPY118.5bn to JPY136.9bn as net sales also fell from JPY225.8bn to JPY183.8bn.

Now counted as part of its Commercial Aviation and Transportation Systems arm, ship orders at MHI fell from 29 in FY2012 to 8 in FY2013, leaving a backlog of 41 vessels including 8 LNG carriers and 7 passenger ships.

As well as a decline in order volumes, MHI also reported a drop in profitability of commercial shipbuilding.

Despite a weak 2013, the company is forecasting improved results in aviation and shipping for FY2014, with orders projected to grow from JPY360bn to JPY600bn and operating income to JPY30bn from JPY18.3bn, although it is unclear whether the improvement is expected from its aircraft or commercial shipping endeavours.