Hitachi logs record net profit despite earthquake

Japanese high-tech firm Hitachi said Wednesday it returned to the black in the year to March on robust electronics sales, logging a record net profit despite damage from the massive quake and tsunami. The Hitachi's group net profit came to 238.87 billion yen ($2.96 billion), its highest-ever, after a loss of 106.96 billion yen in the previous year. Operating profit more than doubled, surging 119.9 % to 444.51 billion yen, as sales grew 3.9 % to 9.32 trillion yen. The results were almost in line with the company's expectations. The March 11 quake and tsunami, which damaged some production bases, dented net profit by 75 billion yen, the company said. Sales were reduced by 130 billion yen due mainly to delays in shipments, said the company, whose products range from computer hard- and software to nuclear power generation systems. "Hitachi suffered damage to its buildings and production facilities, in-process products and other assets," the company said in a statement, adding that it also faced delays in agreeing new contracts. The disaster affected all business segments but profits grew due to higher revenues and cuts in procurement costs and fixed expenses, the company said. The company said construction machinery sales grew on strong demand from emerging economies, while sales also rose in sectors including electronic systems, components and devices, and automotive systems. "Overseas revenues increased 11 % mainly due to a global recovery in demand in the electronics and automotive-related fields," Hitachi said. Hitachi did not release an outlook for the business year to March 2012 due to uncertainty over the seismic disaster but plans to announce it on June 9. Dow Jones Newswires contributed to this article