Steve Crane of Business Link Japan

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22 Oct 2010

Oct 22nd - Hitachi's 1st-Half Operating profit revealed as Y200bn (2.4 bn USD)

Hitachi is expected to report a group operating profit of more than 200 billion yen for the April-September fiscal half, up from the 170 billion yen profit it projected earlier.

The company booked an operating loss of 24.7 billion yen for the same period last year.
Hitachi is seen posting the biggest first-half group operating profit among major electronics manufacturers in this year's reporting season.
Driving profits were subsidiaries that handle high-function materials, such as Hitachi Chemical Co. and Hitachi Metals Ltd. 
On the back of brisk sales at major customer Nissan Motor Co.  demand for electrical components, control equipment and other automotive equipment grew. In addition, construction machinery sales have been on the rise in emerging markets.
The electronic parts business was likely profitable to an extent despite the fallout from the strong yen. And thanks to cost-cutting efforts, earnings improved in the home appliance division, which had been unprofitable.
A decrease in money-losing operations has made it easier for Hitachi to generate profits.
For the October-March second half, sales of hard-disk drives and other electronic devices are seen losing momentum. And uncertainties surround the growth businesses of social infrastructure and telecommunications systems.

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