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Hitachi Plant Technologies Ltd, Japan
COMPANY PROFILE
Hitachi Plant Technologies Ltd, Japan Profile
Hitachi Ltd is the majority owner (68.51%) of Hitachi Plant Technologies Ltd, a new company established in April 2006 as a result of the amalgamation of Hitachi Plant Engineering & Construction, Hitachi Kiden Kogyo, Hitachi Industries Co and part of Hitachi Ltd’s Industrial Systems Group. The new organisation provides manufacturing, engineering, construction and after-sales services to four market sectors: Social Infrastructure Systems; Industrial Systems; Air-conditioning Systems; and Energy Systems. Social Infrastructure Systems includes large pumps, compressors, converters, and water treatment and environmental preservation systems. Hitachi manufactures large pumps for water supply, wastewater and power generation in its main Tsuchiura Works in Japan and has a manufacturing joint venture in China - Hitachi Pump Manufacture (Wuxi) Co Ltd. Analysis
Social Infrastructure Systems’ net sales reached ¥153.4 billion in fiscal 2007 despite curbed public investment and increasing price competition. The growth reflected recovering capital investment in the private sector and good performance for pumps and compressors, primarily in the Middle East, China and Southeast Asia. The division’s operating loss of ¥1.8 billion resulted from unprofitable projects caused by a drop in sales prices for public projects, lower work volume caused by a shrinking public sector market in Japan and a greater emphasis on profitable orders. Key Figures (¥ million) Hitachi Plant Technologies Ltd 2008
COMMENT For the fiscal year ending 31 March 2009, Hitachi Plant Technologies Group says it will place a greater emphasis on accepting profitable orders and streamlining business activities. The Social Infrastructure Systems division is planning to strengthen its international competitiveness and boost sales by shortening lead times and reducing costs. ■
Year ended 31.3 2007 2006
2005
2004
Net Sales: Of Which: Social Infrastructure Systems
398 334
363 167
218 212
199 014
189 454
153.487
149 947
–
–
–
Orders Of Which: Social Infrastructure Systems
390 450
392 422
213 690
208 369
197 979
154 061
144 313
–
–
–
Cost of Sales
365 960
319 088
195 067
178 484
168 832
Gross Profit
32 374
44 079
23 145
20 530
20 622
Operating Income Of Which: Social Infrastructure Systems
(5943)
6483
5371
3702
4265
(1838)
3793
–
–
–
Net Income
(6719)
3008
2753
2033
5131
Capital Expenditure
5990
6091
814
574
942
R&D Expenditure
5101
5588
1486
1589
1706
Employees
7487
7393
–
–
–
Note: Results for 2004 to 2006 are actual results of the former Hitachi Plant Engineering & Construction Co Ltd prior to the integration.
Contact Details
Hitachi Plant Technologies Ltd President and Chief Executive Officer: Address:
6
Pump Industry Analyst
Masaharu Sumikawa 5-2 Higashi-Ikebukuro 4-chome Toshima-ku Tokyo 170-8466 Japan
Tel: +81 3 5928 8100 Web: www.hitachi-pt.com
December 2008
Hitachi Plant Technologies Ltd, Japan Profile
Hitachi Ltd is the majority owner (68.51%) of Hitachi Plant Technologies Ltd, a new company established in April 2006 as a result of the amalgamation of Hitachi Plant Engineering & Construction, Hitachi Kiden Kogyo, Hitachi Industries Co and part of Hitachi Ltd’s Industrial Systems Group. The new organisation provides manufacturing, engineering, construction and after-sales services to four market sectors: Social Infrastructure Systems; Industrial Systems; Air-conditioning Systems; and Energy Systems. Social Infrastructure Systems includes large pumps, compressors, converters, and water treatment and environmental preservation systems. Hitachi manufactures large pumps for water supply, wastewater and power generation in its main Tsuchiura Works in Japan and has a manufacturing joint venture in China - Hitachi Pump Manufacture (Wuxi) Co Ltd. Analysis
Social Infrastructure Systems’ net sales reached ¥153.4 billion in fiscal 2007 despite curbed public investment and increasing price competition. The growth reflected recovering capital investment in the private sector and good performance for pumps and compressors, primarily in the Middle East, China and Southeast Asia. The division’s operating loss of ¥1.8 billion resulted from unprofitable projects caused by a drop in sales prices for public projects, lower work volume caused by a shrinking public sector market in Japan and a greater emphasis on profitable orders. Key Figures (¥ million) Hitachi Plant Technologies Ltd 2008
COMMENT For the fiscal year ending 31 March 2009, Hitachi Plant Technologies Group says it will place a greater emphasis on accepting profitable orders and streamlining business activities. The Social Infrastructure Systems division is planning to strengthen its international competitiveness and boost sales by shortening lead times and reducing costs. ■
Year ended 31.3 2007 2006
2005
2004
Net Sales: Of Which: Social Infrastructure Systems
398 334
363 167
218 212
199 014
189 454
153.487
149 947
–
–
–
Orders Of Which: Social Infrastructure Systems
390 450
392 422
213 690
208 369
197 979
154 061
144 313
–
–
–
Cost of Sales
365 960
319 088
195 067
178 484
168 832
Gross Profit
32 374
44 079
23 145
20 530
20 622
Operating Income Of Which: Social Infrastructure Systems
(5943)
6483
5371
3702
4265
(1838)
3793
–
–
–
Net Income
(6719)
3008
2753
2033
5131
Capital Expenditure
5990
6091
814
574
942
R&D Expenditure
5101
5588
1486
1589
1706
Employees
7487
7393
–
–
–
Note: Results for 2004 to 2006 are actual results of the former Hitachi Plant Engineering & Construction Co Ltd prior to the integration.
Contact Details
Hitachi Plant Technologies Ltd President and Chief Executive Officer: Address:
6
Pump Industry Analyst
Masaharu Sumikawa 5-2 Higashi-Ikebukuro 4-chome Toshima-ku Tokyo 170-8466 Japan
Tel: +81 3 5928 8100 Web: www.hitachi-pt.com
December 2008