Hitachi logs Q3 profit on cost cuts, lifts outlook

TOKYO, Feb 4 (BestGrowthStock) – Hitachi Ltd (6501.T: ), Japan’s
biggest electronics maker, reported a surprise quarterly net
profit after it cut costs in its TVs and microchips, and it
raised its forecast closer to market consensus.

It also said that its Executive Vice President Hiroaki
Nakanishi would replace its current President Takashi Kawamura as
President.

Hitachi reported a net profit of 21.9 billion yen ($241
million) in its fiscal third quarter, up from last year’s loss of
371.1 billion yen and blowing past the average estimate of a 22.8
billion yen loss by analysts at JP Morgan and Mitsubishi UFJ
Securities.

Hitachi, General Electric’s (GE.N: ) partner in nuclear power,
lifted its outlook to a net loss of 210 billion yen, from a
previous forecast of a loss of 230 billion yen for the year to
March.

The guidance still misses the consensus average for a 205
billion yen loss by 13 analysts polled by Thomson Reuters
I/B/E/S.

Hitachi, which was forced to raise funds to shore up its
depleted capital in December, is looking to trim units whose
losses are eroding profits made in metals, cables and
construction machinery and hopes to shift focus to its batteries,
power systems and infrastructure businesses.

Shares in Hitachi shed 3 percent in October-December, in line
with Tokyo’s index of electrical machinery (.IELEC.T: ). Its shares
have risen close to 9 percent since the start of the calendar
year, while the index stayed flat.

Stock Today

(Reporting by Mayumi Negishi)

Hitachi logs Q3 profit on cost cuts, lifts outlook