Hitachi struggles through fiscal year

Hitachi Construction Machinery (HCM) has recorded fiscal year revenues of JPY 758.33 billion (US$ 6.82 billion), representing a 7% decrease compared to the same period a year ago.

HCM said its decrease was due to a decline in construction/mining machinery sales resulting from weaker demand.

The fiscal year ran from 1 April 2015, to 31 March 2016.

Its operating income also fell 46.1% to JPY 34.05 billion (US$ 310 million) for the 2015-16 fiscal year, which the company said was due to a decline in sales volume due to lower demand, exchange loss, and expenses for business/structural reform.

Regionally, there were decreases in its revenue across the globe, except for Japan, where it saw a 5% increase year-on-year to JPY 232.8 billion (US$ 2.09 billion). It said demand for wheel loaders and mini excavators increased year-on-year, due to last-minute demand before the implementation of new emissions regulations. However, it added, 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.

HCM’s US sales fell 11.4% for the fiscal year, while its European sales also fell some 4.7%. Sales in Russia, Africa and the Middle East fell 10.8% year-on-year, while Asia and Oceania decreased 10%. China saw the biggest fall at 26.2%, which it said was due to a significant decrease in demand for construction machinery.

HCM said it was expecting further decreases over the next year, with its revenues forecast at JPY 720 billion (US$ 6.47 billion).