Hitachi Ltd. posted a 40% surge in first-half profit as robust demand for power grid equipment and digital services drove earnings growth at the Japanese industrial giant.
Net income rose to 292.3 billion yen ($2 billion) in the six months through September, while revenue dropped 8% to 4.55 trillion yen after the company turned its automotive unit into an equity-method affiliate.
The Tokyo-based company maintained its full-year profit forecast of 600 billion yen as it expands higher-margin service businesses. Hitachi Energy, its power grid unit, saw orders jump 42% to 3.12 trillion yen on strong demand for renewable energy and data center solutions.
Digital services revenue increased 10% to 1.31 trillion yen, benefiting from Japanese corporate investments in digital transformation. The segment’s profit margin widened to 12.9%.
Chief Financial Officer Tomomi Kato said Hitachi plans to achieve 1.5 trillion yen in cumulative free cash flow over three years, exceeding its mid-term target by 300 billion yen.
The company increased its interim dividend by 31% to 21 yen per share and is proceeding with a previously announced 200 billion yen share buyback.
