Hitachi, Ltd. (TYO:6501) is forecasting an 18.5% jump in operating profit for the fiscal year, which is in line with expectations. Hitachi is benefiting from a weaker yen and is projecting that there will be an economic recovery at home and abroad. Hitachi has a $31 billion market cap and over 300,000 employees worldwide.
The company said today that they have an expected operating profit of 500 billion yen ($5.03 billion) for the year to March 31, 2014. This is compared to a 524.8 billion yen average forecast by 21 analysts that were polled by Thomson Reuters.
Hitachi is expecting a recovery in their construction equipment division. This division was seeing an operating profit of 82 billion yen in the year to March, which is up from 54.6 billion yen in the previous year. Hitachi operates two nuclear joint ventures with General Electrinc. Last year, Hitachi merged their thermal power business with Mitsubishi Heavy Industries to compete against Toshiba and Siemens AG.
Today Hitachi reported a net profit of 175.33 billion yen for the year ended March 31st, down from 347.18 billion yen in the previous year. The company’s revenue declined 6.5% to 9.041 trillion yen in the last fiscal year from 9.666 trillion yen.
Hitachi is assuming exchange rates of 95 yen per dollar and 120 yen per euro for the current financial year.