OREANDA-NEWS. Hitachi Announces Consolidated Financial Results for the Second Quarter ended September 30, 2014.

During the first half of fiscal 2014, there was increasing uncertainty about the outlook for the global economy as a whole, despite improving employment and income levels in the U.S., along with an ongoing recovery in consumer spending and the housing investment. Globally, there are persistent concerns about financial problems and economic slowdowns in Europe, and the appearance of signs of slowing economic growth in China. The Japanese economy saw business conditions gradually improve despite a reactionary downturn after the consumption tax hike and sluggish personal consumption due to the unseasonable weather. This improvement was mainly due to the government's implementation of national growth strategies, with other positive factors including improved employment conditions and a rebound in corporate capital expenditures.

Hitachi's consolidated revenues for the first half of fiscal 2014 increased 1% year over year, to 4,496.7 billion yen. This increase resulted mainly from higher year over year revenues in the following segments: the Information & Telecommunication Systems Segment, where system solutions performed solidly; the Social Infrastructure & Industrial Systems Segment, which had a strong performance by the elevator and escalator business in China; and the Electronic Systems & Equipment Segment, mainly attributable to higher revenues at Hitachi High-Technologies Corporation.

Hitachi posted operating income of 214.0 billion yen, up 40.5 billion yen year over year. This was largely due to higher year over year operating income mainly in the Electronic Systems & Equipment, Social Infrastructure & Industrial Systems, Smart Life & Ecofriendly Systems, Automotive Systems, and Information & Telecommunication Systems segments.

EBIT increased 75.3 billion yen year over year, to 217.3 billion yen, due mainly to higher operating income.

Hitachi recorded net other deductions of 4.5 billion yen, an improvement of 33.4 billion yen year on year.

As a result, Hitachi recorded income before income taxes of 209.5 billion yen, up 73.9 billion yen year over year. After deducting taxes of 64.6 billion yen, Hitachi posted net income of 144.8 billion yen, up 75.4 billion yen year over year. After deducting net income attributable to noncontrolling interests of 53.2 billion yen, Hitachi posted net income attributable to Hitachi, Ltd. stockholders of 91.5 billion yen, up 58.7 billion yen year over year.

For the second quarter of fiscal 2014, the three months ended September 30, 2014, consolidated revenues were down 1% year over year to 2,360.4 billion yen. Operating income increased 15.8 billion yen year over year to 133.8 billion yen with all segments recording higher profits than the same period, with the exception of the Power Systems and Construction Machinery segments. EBIT increased 48.7 billion yen year over year to 132.1 billion yen, mainly reflecting higher operating income. Hitachi posted net income attributable to Hitachi, Ltd. stockholders of 62.6 billion yen, a 40.6 billion yen increase year over year.