Hitachi : April-Dec. net profit down 33% on weak overseas sales
January 31, 2020 at 01:43 am EST
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Hitachi Ltd. reported Friday its group net profit for the April to December period fell 33.3 percent from a year earlier to 55.15 billion yen ($505 million), reflecting sales declines in Asian and other countries.
The industrial machinery and electronic device manufacturer said its operating profit also fell 16.6 percent to 445.63 billion yen on sales of 6.34 trillion yen, down 6.5 percent.
Hitachi maintained its net profit forecast for the fiscal year to March at 170 billion yen after booking a one-time expense of 378 billion yen for a settlement with Mitsubishi Heavy Industries Ltd. over losses from a thermal power generation project in South Africa involving their joint venture.
It lowered its operating profit projection to 669 billion yen from 685 billion yen but kept its sales outlook at 8.70 trillion yen.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
