Hitachi Announces Financial Results for First Half of Fiscal 2006
Oct 31, 2006
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Hitachi, Ltd. announced its consolidated financial results for the first half of fiscal 2006, ended Sept. 30, 2006. Hitachi’s consolidated revenues rose 8 percent, to 4.8 trillion yen (approx. U.S. $40.8 billion), as revenues increased in all segments. Revenues grew strongly in the High Functional Materials & Components segment, mainly due to growth in sales of components and materials for electronics- and automotive-related fields. Furthermore, revenues were higher year on year in the Information & Telecommunication Systems segment on growth in sales of storage products and the Digital Media & Consumer Products segment due to growth in sales of flat-panel TVs and other factors.
Overseas revenues climbed 17 percent, to 1.9 trillion yen (approx. $16.1 billion). Revenues were higher in the Information & Telecommunication Systems, Power & Industrial Systems, High Functional Materials & Components and other segments, particularly in China, which is a focus of the Hitachi Group’s efforts overseas.
Operating income dropped 74 percent, to 19.8 billion yen (approx. $168.1 million), despite growth in the High Functional Materials & Components, Electronic Devices and some other segments. The year-on-year drop in earnings resulted from lower earnings in the Information & Telecommunication Systems segment and operating losses in the Power & Industrial Systems and Digital Media & Consumer Products segments.
Other income increased 34 percent, to 39 billion yen (approx. $331 million) due to such factors as higher gains on sales of investment securities. Other deductions increased 34 percent, to 33 billion yen (approx. $280.1 million), chiefly as a result of foreign currency losses.
As a result, Hitachi recorded income before income taxes and minority interests of 25.8 billion yen (approx. $219 million), down 69 percent year on year. After income taxes of 60.5 billion yen (approx. $513.6 million), Hitachi posted a loss before minority interests of 34.7 billion yen (approx. $294.6 million). Hitachi also reported a net loss of 78 billion yen (approx. $662.3 million), which was 67.1 billion yen (approx. $569.7 million) more than the loss recorded in the corresponding period of the previous fiscal year.
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