Hitachi Ltd. on Friday predicted a 16 percent jump in fiscal 2011 operating profit on overseas demand for thermal power stations and a rebound in production after the March 2011 catastrophe.

Operating profit may rise to ¥480 billion in the year ending March 31, up from ¥412.3 billion a year earlier, although sales may fall 5.9 percent to ¥9.1 trillion, Japan's second-largest manufacturer said.

The projections are mostly in line with analysts' estimates. Based on an average of 20 analysts' estimates compiled by Bloomberg, the company was expected to forecast operating profit of ¥484.9 billion.

But net income could drop 42 percent to ¥200 billion following a one-time gain from the sale of a hard-disk drive unit a year earlier.

Hitachi's power systems business is expected to return to the black thanks to demand for coal-fired power stations in emerging markets, after it posted a loss the previous year due to difficulties with boilers and project delays in Europe. The company also suffered factory disruptions in fiscal 2011 because of severe flooding in Thailand and the Great East Japan Earthquake.

"Hitachi should increase its focus on emerging markets to expand sales," said Mitsushige Akino, who oversees about ¥48 billion in assets at Tokyo-based Ichiyoshi Investment Management Co. "It should be able to leverage the strength of its power-generation equipment and train making units."

The power systems unit will probably log an operating profit of ¥22 billion in the current fiscal year from April 1, compared with a ¥33.9 billion loss a year earlier, Hitachi said, predicting revenue from overseas and renewable energy equipment will offset waning demand for nuclear power systems and domestic demand for thermal power equipment will remain strong.

The company expects its digital media and consumer products division to break even this year as it restructures its TV manufacturing operations to counter the high yen and competition from Samsung Electronics Co. and LG Electronics Inc. The unit, which also makes home appliances and air conditioners, plans to cease domestic production of TVs in September.