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Hitachi, Toshiba see strong profit growth in April-June

July 31, 2014

Leading industrial machinery makers Hitachi Ltd. and Toshiba Corp. reported on Thursday strong profit growth for the April to June quarter, benefiting from robust demand for infrastructure equipment.

Hitachi said its group net profit more than doubled to 28.87 billion yen from 10.80 billion yen a year earlier, with its operating profit climbing 44.5 percent to 80.18 billion yen and sales up 2.6 percent at 2.14 trillion yen.

Among its core operations, the system solutions business for such clients as financial firms and the industrial machinery business covering elevators and railway systems performed solidly, Hitachi said.

Toshiba's net profit in the quarter grew 68.7 percent to 8.94 billion yen. Its operating profit rose 57.1 percent to 39.50 billion yen and sales went up 2.7 percent to 1.41 trillion yen.

It saw robust demand for solar-power generation systems and railway equipment. The strong infrastructure system business made up for declined sales of flash memory chips resulting from price falls, Toshiba said.

Toshiba also said it will reduce the size of its workforce in its business of making televisions and other visual equipment by 300 through September next year for cost reduction by merging some of its sales offices overseas and transferring employees in Japan to different divisions.

Both Hitachi and Toshiba left their earnings forecast unchanged for the business year ending next March. Hitachi expects 230 billion yen in net profit, down 13 percent on year, while Toshiba projects a net profit of 120 billion yen, up 136.1 percent on year.

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Source: Japan Economic Newswire

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