Tokyo: Hitachi Ltd, 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.
Hitachi, which was forced to raise funds to shore up its depleted capital in December, is looking to consolidate its sprawling operations and trim units whose losses are eroding profits made in metals, cables and construction machinery.
For the year ending in March, Hitachi, which has a joint venture with General Electric in nuclear power, lifted its forecast to a net loss of ¥210 billion ($2.3 billion). That was up from a previous forecast of ¥230 billion but still slightly short of the consensus average for a ¥205 billion loss by 13 analysts polled by Thomson Reuters .
Hitachi sprang to its first quarterly net profit in six quarters, swinging to a ¥21.9 billion profit in October-December from last year’s loss of ¥371.1 billion , and blowing past the average estimate for a loss of ¥22.8 billion by analysts at JP Morgan and Mitsubishi UFJ Securities.
Its quarterly operating profit rose to to ¥66.4 billion from a loss of ¥14.5 billion a year earlier. Sales fell 4.5%.
Hitachi also said it would promote executive vice president Hiroaki Nakanishi to president, replacing Takashi Kawamura.
Prior to the announcement, shares of Hitachi fell 1.6%, broadly in line with Tokyo’s index of electrical machinery stocks, which lost 1.3%.
Its shares have risen close to 9% since the start of the calendar year, while the index has stayed flat.