Hitachi Results: Appliance/CE Business Still Hurting from Earthquake Aftermath
Aug 4, 2011
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Hitachi, Ltd. (Tokyo) reported revenues of 2,150,693 million yen (approx. US$26,552 million) in the first quarter of its fiscal year 2011, flat when compared to 2,152,566 million yen in the same quarter a year ago.
Hitachi's Digital Media & Consumer Products segment includes businesses making and selling home appliances, consumer electronics, and HVAC equipment. Digital Media & Consumer Products had revenues in the first quarter of 233.1 billion yen (approx. $2.878 billion), down 9% from the first quarter of the previous year. Operating income was 3.2 billion yen (approx. $41 million), down 3.8% from the first quarter of the previous year.
Lower optical disk drive sales were the result of parts and components shortages resulting from the earthquake. Year-over-year sales revenue from flat-panel TVs were down due to lower sales prices.
Helping offset the decreases to some extent: room air-conditioners posted higher sales, mainly in Japan, spurred by demand for upgrading to energy-saving models.
Hitachi also operates in a number of other industries. In the quarter, which ended June 30, 2011, Hitachi as a whole had operating income of 52,403 million yen (approx $647 million), down 36.0% from 88,475 million yen in the same quarter last year. Net income was 16,265 million yen, (approx. $201 million), down 101.2% compared to 117,468 million yen in the same quarter a year ago.
Hitachi described the operating environment as harsh during the quarter, with the company and Japan as a whole still dealing with the aftermath of the Great East Japan Earthquake of March 11. Power supply restrictions, disruptions to supply chains for parts and components, and other factors were still factors during the quarter.
Hitachi Group suffered damage to a large number of buildings and production facilities but said that, as a result of cohesive group-wide efforts, production had resumed at most sites by the end of April 2011.
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