Hitachi doubles net profit

AFP-JIJI

High-tech firm Hitachi Ltd. said Monday net profit almost doubled in the first quarter but warned about turmoil in Europe and a slowdown in China.

The firm said it earned ¥7.0 billion in the three months to June, up from just ¥2.93 billion a year earlier, on stronger sales in its construction machinery, power and automotive systems businesses.

Sales in the period were ¥2.12 trillion, down about 1.0 percent.

“While nuclear power generation systems recorded lower sales, thermal power generation systems performed strongly,” the company, which makes an array of goods from microchips to trains, said in a statement.

It also credited a rise in its domestic elevator and escalator business and railways, adding that it had largely recovered from the pain of last year’s quake-tsunami disaster, which pounded Japanese firms.

But “in terms of the overall business environment going forward, credit worries in Europe are expected to drag on, while at the same time there is a slowdown building in China and other emerging economies,” it said.

Last week, Hitachi signed a deal to supply nearly 600 train carriages for Britain’s intercity rail project in a deal worth £4.5 billion ($7.06 billion).