Hitachi posts jump in Q3 profit, lifts forecast
Hitachi Ltd recorded a near doubling of quarterly operating profit as it cut costs and boosted sales in emerging economies, and raised its annual outlook for the second time to above market expectations.
February 03, 2011 / 13:24 IST
Hitachi Ltd recorded a near doubling of quarterly operating profit as it cut costs and boosted sales in emerging economies, and raised its annual outlook for the second time to above market expectations.
The result marked the electronics conglomerate's sixth straight quarterly operating profit, as it battles back from one of the biggest losses in Japanese corporate history reported only two years ago under the weight of a high-cost structure and lack of operational focus.Led by Hitachi President Hiroaki Nakanishi, the company is overhauling its sprawling empire of some 900 firms to focus more on its growing infrastructure businesses while shedding unprofitable operations. It is on track to turn its first net profit in five years.Hitachi, which makes everything from washing machines to railway systems and is General Electric's partner in nuclear power, reported on Thursday an operating profit of 119.8 billion yen (USD1.47 billion) for the October-December quarter.That was up from 66.3 billion yen a year ago, and compared with an average forecast of 77.35 billion yen in a poll of four analysts by Thomson Reuters I/B/E/S.For its fiscal year ending March 31, Hitachi raised its operating profit forecast to 440 billion yen from 410 billion yen.The forecast is more than an average forecast of 424.6 billion yen in a poll of 20 analysts.Subsidiary Hitachi Construction Machinery Co, which competes with top ranked Caterpillar Inc, last week reported a nearly 12-fold rise in quarterly profit, powered by robust demand from China and other Asian markets.Hitachi shares rose about 19% in October-December, outpacing a 9% rise in the benchmark Nikkei index. The stock ended up 0.6% before the results announcement on Thursday, against the Nikkei's 0.3% fall. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
