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Hitachi posts 51.1% profit jump in full year to March

LiveMint logoLiveMint 12-05-2014 AFP

Tokyo: Japan’s Hitachi Ltd said on Monday that the group net profit surged 51.1% in the full year to March, thanks to improved sales in information systems and its social infrastructure business.

Net profit soared to 264.98 billion yen ($2.60 billion), the electronics and machinery maker said. Operating profit rose 26.3% to 532.81 billion yen on sales of 9.62 trillion yen, a rise of 6.4% from a year earlier.

Revenue and profits in its power generation systems business sank as its thermal power plants business was integrated into a joint venture (JV) with Mitsubishi Heavy Industries Ltd.

But the slump was more than offset by robust business in elevators for the Chinese market and in information systems, Hitachi said.

Household appliances such as refrigerators also fared well due to a rush in demand ahead of a sales tax hike in April, it said.

Consumption tax in Japan rose from 5% to 8% at the start of the month. A number of consumer-facing industries reported a surge in sales in the final weeks of the fiscal year as buyers rushed to make purchases before the price went up.

Hitachi’s profit was also lifted by gains on the evaluation of shares it holds in the JV with Mitsubishi Heavy Industries, it said.

Hitachi now expects a net profit of 230 billion yen for the full year to March 2015 on sales of 9.4 trillion yen.

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