TOKYO Jan 9 Shares of Japan's GS Yuasa Corp
, which makes batteries for Boeing Co's new 787
Dreamliner, fell sharply for a second day on Wednesday after a
fire aboard a Japan Airlines aircraft earlier this week.
"The batteries were made by our company," a GS Yuasa
spokesman told Reuters, adding that the cause of the fire was
unclear, and whether or not the fire was sparked by the GS
Yuasa-made batteries had not been determined.
"We are ready to send our crew for investigation when we get
more details from the authorities," he said. The company said it
provides auxiliary power unit batteries for the Dreamliner.
On Monday, an electrical fire erupted on one of Boeing's 787
Dreamliners operated by Japan Airlines at Boston's
Logan International airport. Authorities said a battery in the
auxiliary power unit aboard the plane jet had suffered "severe
In a second mishap a day later at the same airport, a fuel
leak forced a different 787 operated by Japan Airlines to cancel
takeoff at the Boston airport. The two incidents have extended a
series of problems that have dogged the jet for more than a
month and notched up concern about the plane.
Shares in GS Yuasa, Japan's top producer of traditional
lead acid auto batteries with a 35 percent chunk of the domestic
market, fell as much as 5.1 percent to 318 yen, after falling 4
percent on Tuesday.
Analysts said the impact on earnings was seen as limited at
present, as the company's industrial battery business only
accounts for 1 percent of group sales.
"We think this incident is unlikely to have any major impact
on earnings at GS Yuasa at this point because industrial
application LiBs (lithium-ion batteries) make only a modest
earnings contribution," Citigroup analyst Tsubasa Sasaki said in
"However, industrial LiBs are one of the company's growth
areas and we think earnings could be negatively affected to some
degree if it turns out that its batteries did trigger the fire."
GS Yuasa's products range from lead acid batteries for auto
and motorbike uses to industrial lithium-ion batteries.
Japan Airlines said six of its seven Boeing 787 aircraft are
operating in Japan, while one remains at Boston Logan. Japan's
transport ministry ordered inspections of batteries in the
auxiliary power unit. JAL inspected six of the units and found