MANHASSET, N.Y. Japan-based Hitachi Ltd. reported earnings of $319 million on sales of $80.9 billion in its 2005 fiscal year ended March 31, 2006. Net earnings declined 28 percent from fiscal 2004, while sales rose 5 percent.
The company reported operating income of $724 million, an 8 percent year-on-year decline, due mainly to lower earnings in the Electronics Devices segment and an operating loss in the Digital Media and Consumer Products segment.
Overseas revenue rose 11 percent to $32 million, due to growth in the Information & Telecommunications Systems, Power and Industrial Systems, and High Functional Materials and Components sectors.
Electronic Devices revenues declined 9 percent, to $10.3 billion, due to lower display sales arising from lower LCD revenue from falling prices.
Capital investment on a completion basis, excluding leasing assets, rose 4 percent to $3.48 billion, mainly due to investments to increase output of hard disk drives, plasma display panels, automotive-related parts and other products, as well as investments in high functional materials.
For fiscal 2006, Hitachi projects sales of $88 billion, with net income of $500 million, based on increasing exports to China and rising consumer spending and plant and equipment investment.