Hitachi profits up but Asia weak

Hitachi Construction Machinery had revenues of JPY 188 billion (US$ 1.84 billion) for the first quarter of the fiscal year, ending on June 30. This represented a +0.6% increase on the same period last year, but operating income was up +21.1% to JPY 11.6 billion (US$ 113 million).

On the downside, the Japanese manufacturer said its domestic revenues were down -3% compared to a year ago, when there was a rush of sales ahead of a new step in national exhaust emission laws. It also said other Asian markets including China and India had declined. However, sales were up in Europe and business was described as “brisk” in North America.

Hitachi said it expected the total market for excavators in the China, Asia and Oceania regions to be 193,000 units this year, a decrease of -9% or 17,000 units compared to last year.

As a result the company has revised its revenue and profits forecasts down for the full fiscal year. It now expects sales of JPY 740 billion (US$ 7.26 billion), compared to its previous forecast of JPY 800 billion (US$ 7.84 billion) and last year’s figure of JPY 803 billion (US$ 7.87 billion). Net profits are expected to come in at JPY 30 billion (US$ 294 million), compared to the previous forecast of JPY 45 billion (US$ 441 million). However, profits should still be higher than last year’s figure of JPY 28.9 billion (US$ 284 million).