Hitachi’s operating income drops by 46.1%
Hitachi Construction Machinery budget suffers from sales dip, exchange rates and restructuring costs
Hitachi Construction Machinery (HCM) has recorded fiscal year revenues of $6.82bn – a 7% decrease compared to the same period a year ago that it attributed to a decline in construction and mining.
Its operating income meanwhile plummeted 46.1% to $310m for the 2015-16 fiscal year, due to a combination of the sales decline, exchange loss and expenses incurred by restructuring processes.
China saw the biggest fall in sales at 26.2%, but there were decreases in its revenue across the globe, except for Japan, where it saw a 5% increase in revenue year-on-year to $2.09bn.
HCM expects further decreases over the next year, with its revenues forecast at $6.47bn for 2016
Demand for Hitachi’s wheel loaders and mini excavators actually increased year-on-year, due to last-minute demand before the implementation of new emissions regulations.
However, demand for hydraulic excavators significantly declined from last year as a reaction to last-minute demand in anticipation of new emissions regulations implemented in the previous two years.