Hitachi Announces Revisions of Interim Forecasts for Fiscal 2013
OREANDA-NEWS. Hitachi, Ltd. announced revisions to the Company's consolidated business forecasts for the first half of fiscal 2013, the year ending March 31, 2014, which were announced on July 30, 2013 in light of recent business performance.
Hitachi has raised its forecast for revenues for the first half of fiscal 2013 by 70 billion yen from the previous forecast announced on July 30, 2013 expecting higher revenues in the Information & Telecommunication Systems Segment, Automotive Systems Segment and other segments.
The Company has also raised its forecast for operating income by 28 billion yen. This revision is based on improved operating income in all business segments, most notably in Power Systems segment and Social Infrastructure & Industrial Systems Segment.
Hitachi plans to post the fine due to violations of U.S. antitrust laws, which Hitachi Automotive Systems, Ltd. -- subsidiary of Hitachi -- has agreed to pay with the United States Department of Justice, in the amount of 195 million U.S. dollars (19.0 billion yen) on other deductions. On the other hand, Hitachi plans to post improved net gain on foreign exchange and net loss on sale and disposal of fix assets on other income.
As a result, Hitachi has also raised its projection for income before income taxes by 20 billion yen, and raised its forecasts for net income by 19 billion yen and net income attributable to Hitachi, Ltd. stockholders by 17 billion yen. Hitachi adopted EBIT as one of KPIs to measure its business performance from this fiscal year.
The Company has raised its forecast for EBIT for the first half of fiscal 2013, which were 120 billion yen, by 22 billion yen to 142 billion yen. This mainly reflecting the improvement in operating income. EBIT of the same period of previous fiscal year was 124 billion yen. EBIT is defined income before income taxes less interest income plus interest charges.
On the basis of these results, Consolidated Interim Business Forecasts for Fiscal 2013 will mark increases both in revenues and profits.
Hitachi has not revised its full - year forecasts at this time because of considerable uncertainty surrounding the business environment in the second half of fiscal 2013. Uncertain factors include trends in the global economy, especially in the U.S., Europe and China, foreign currency fluctuations, and fluctuations in raw materials prices.
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