IT segment performance prop–Hitachi 2020 fiscal year 1st quarter financial results

Hitachi,by fiscal 2020(2021 Year 3 months)the 1st quarter consolidated financial results presented,IT segments the company’s operating performance to support the way. Q1 sales revenue compared to the same period last year 21. 6%, a decrease of 1 trillion 5942 billion, adjusted operating income is 53. 1% to 583 billion yen,EBIT 86. An increase of 5% 3404 billion, continuing business before income taxes 86. 8% to 3397 billion yen, and net income is 85. 6%, an increase of 2232 billion yen,operating income ratio is 3. Was 7%.

Senior Managing Executive Officer CFO(Chief Financial Officer)Kawamura, Yoshihiko; and said,”the IT segment, the benefit is about half, the profit margin in other sectors of approximately 2 times that. IT is the company’s performance supports. “Lumada”mainly in the IT segment around the resources to invest and deemed to be reasonable, and Lumada business expansion strategic investments to continue,Digital Subscription (DX)”to accelerate and.

Results description Senior Managing Executive Officer CFO Kawamura, Yoshihiko; MS (Central)

The Corona Virus virus infection from the effects of the sales revenue is 2998 billion yen,adjusted operating income 65.7 billion yen,EBIT at 736 million yen, and”income, but the new coronavirus excluding the impact of revenue,adjusted operating income was almost the previous year. The 1st quarter is”IT””energy””the””mobility”of the 4 sectors profit margin improvement”(Jackson, MS) and.

Results by segment in the IT sales revenue increased by 7% compared to a decrease of 4301 billion, adjusted operating income was down 5% from 382 billion yen. “The IT sector is financial,Public,Storage-centric hardware, Lumada data and the 4 in the area of business, but the public were particularly strong. The new coronavirus is the impact of remote and non-contact,video-conference, such as the demand of this towards the development of new applications, it significantly extends. Education・Medical, such as IT investment was not enough and the investment in the future can be expected. Public and Lumada there will be”(Kawamura, Mr. Long).

Lumada of business sales compared with the same period last year 9. 5% to 2190 billion yen, of which Lumada core business is 3. 9%increase to 1320 billion, Lumada related business is 24. 3% to 870 billion yen. But 2020 FY, the Lumada throughout the year-on-year 6. 1% increase of 1 trillion 1000 billion, of Lumada core business 11. 3%, an increase of 6600 billion, Lumada related business 0. 9%, a decrease of 4400 billion yen. “Almost as planned and see,”says Kawamura was explained.

Lumada core business is customer data, and artificial intelligence(AI) and Analytics of use value to convert,customer management indicators improved and issues are resolved to services, such as a digital solutions business that includes. Lumada-related business, the Lumada core business and major synergies expected control systems and products mainly for advanced products and systems business including.

Lumada business topics(Hitachi’s results briefing material)

1st quarter Lumada of business topics,Cognizant’s digital business sector project was Gajen Kandiah, Mr.,Hitachi Vantara of the Chief Executive Officer (CEO)to greet and cited,Kawamura, said:”We Lumada-related business will strengthen hopes that,”he said.

Also, the customer/the set of integrated digital solutions, digital business, global expansion is accelerating, and Microsoft and Southeast Asia, North America, Japan, and manufacturing and logistics for the next generation of digital solutions announced a strategic partnership to. The lines of communication preparation and management of the data from the fit the product, leverage of the Foundation in a lump sum for services provided as the company’s global IoT business to support”Hitachi Global Data Integration”also started to provide this introduction. Other Daikin’s chemicals business, demand fluctuates in response to the optimal production, sales planning and execution support to make the solution operational, and Teijin of new materials R & D in the DX towards promoting collaborative creation started with.

Incidentally, the energy sector’s revenue compared with the same period last year, a 3% increase of 74.4 billion yen,adjusted operating income rose 294%, an increase of 20 billion yen. The sector’s sales revenue, an increase of 4% 1658 billion, adjusted operating income increased 27% to 17 billion yen. The mobility sector revenue increased 11% to 2482 billion, adjusted operating income increased 4% to 191 billion yen. Of revenue is a decrease of 19% from 4036 billion, adjusted operating income increased 92 percent to 18 billion yen. Other sector revenue increased 8 percent to 985 billion, adjusted operating income is 51 percent to 16 billion yen.

Listed subsidiaries results, the Hitachi Construction machinery sales revenue 27 percent to 170.1 billion yen,adjusted operating profit is 88%, a decrease of 26 billion yen. Hitachi Metals sales revenue is 34%, a decrease of 1547 billion, and adjusted operating income of 72 billion became a deficit.

2020 fiscal year the company forecasts its consolidated business results, the sales revenue in the 8000 billion yen towards the correct,the year-on-year 10. 1% to 7 trillion 8800 billion and. Also other items are deferred,adjusted operating income year-on-year 43. 8%, a decrease of 3720 billion, and EBIT is 234. An increase of 4% 6140 billion, continuing business before income taxes 232. 8%, an increase of 6000 billion yen, and net income of 282. An increase of 4% 3350 billion expected to be spent on this project. Kawamura says,”the Corona Virus virus the effect of the calculation of the prerequisites have not changed. In the first half to 7% in the impact, and the second half is the impact decay and have a look”and. By fiscal 2020, and a new type of coronavirus negative impact,revenue in the 9600 billion yen,adjusted operating income of 2860 billion, EBIT 3570 billion yen expected.