TOKYO - Japanese electronics maker Hitachi Ltd. said Tuesday its profit surged in its third fiscal quarter as its power plant, hardware and telecommunications businesses recovered.
But Japan's biggest electronics conglomerate by sales slashed its outlook for net income for the fiscal year because it plans to invest another 30 billion yen ($280.6 million) in a liquid crystal display business to produce flat-panel TVs — an attempt to stay competitive in the market. It raised its projection for operating profit and revenue, however.
Hitachi earned 12.5 billion yen ($116.9 million) during the October-December quarter, up from 1.26 billion yen in the same period the previous year.
Group sales rose nearly 10 percent to 2.71 trillion yen ($25.35 billion) from 2.49 trillion yen a year ago, the company said. Operating profit rose 27 percent to 77.9 billion yen ($728.7 million) from 61.56 billion yen.
Hitachi's information and telecommunications operations returned to profitability on booming sales of software and hard disk drives.
"Significant improvement" in electric power business, as well as automobile parts, elevators and construction equipment contributed to the revenue growth during the quarter, the company said.
But it booked an operating loss of 15 billion yen ($140.32 million) in the consumer electronics and digital media division, though that was narrower than the loss of 19 billion a year earlier.
Hitachi cut its net income forecast for the year ending March 31 to 10 billion yen ($93.5 million) from the previous forecast of 40 billion yen.
But it lifted its outlook for operating profit — which excludes one-time items — to 300 billion yen ($2.81 million) from 290 billion yen, and its sales projection to 10.8 trillion ($101.03 billion) from 10.5 trillion yen.
Hitachi's earnings results are based on U.S. accounting standards.
Hitachi reported its results after the close of trade on the Tokyo Stock Exchange, where its shares rose 0.9 percent to 819 yen ($7.66).
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