News Column

Earnings Hitachi UPDATE1

February 4, 2014

TOKYO , Feb. 4 -- ( Kyodo ) _ (EDS: ADDING INFO) Hitachi Ltd. on Tuesday raised its group operating profit forecast for the year to next month from a projected 500 billion yen to a record 510 billion yen , up 20.8 percent from the previous year. The electronics maker will thus set a new group operating profit record for the first time in 23 years. It also increased its group net profit forecast to 215 billion yen , up 22.6 percent, and its sales projection to 9.4 trillion yen , up 4.0 percent. A wide range of products from automotive systems and high-performance materials to home appliances like air conditioners sold well, more than offsetting a decline in electric power generation equipment sales. Cost cuts and the weaker yen, as well as robust sales, pushed up profits. In the nine months to Dec. 31 , the company saw its group net profit more than double to 127.27 billion yen from 50.36 billion yen in the same period of the previous year. Operating profit grew 27.4 percent to 295.48 billion yen on sales of 6.77 trillion yen , up 4.7 percent. "Given the earnings improvement, we will consider passing the improvement on to employees," Hitachi Executive Vice President Toyoaki Nakamura said, indicating a positive attitude on spring wage hikes.

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Source: Japan Economic Newswire

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