‘Internet of things’ sends Hitachi to tape Q1 profit – Nikkei Asian Evaluation

TOKYO-- reported a record first-quarter net earnings for the very first time in eight years on Friday, as the "web of things" drives a renewal of the Japanese corporation's information and telecommunications business.Consolidated net earnings

reached 105.2 billion yen ($948 million) for the 3 months ended June 30, up 40 %from the first quarter of fiscal 2017. Operating profit leapt 12 %on the year to 148.1 billion yen, setting a first-quarter record for the second straight year. Sales rose 4%to 2.17 trillion yen.The sale of Hitachi Kokusai Electric included more than 30 billion yen

to the bottom line. Strong sales of railway systems in Europe also offered an increase. "The very first quarter readied, and we mean to maintain the speed,"Chief Financial Officer Mitsuaki Nishiyama informed press reporters in Tokyo.The info and telecommunication systems sector has become the face of Hitachi as need

grows in the internet of things field.Just 3 to 4 years back, this sector accounted for less than 10%of Hitachi's unadjusted combined operating earnings.

To enhance profitability, Hitachi abandoned internal advancement of low-margin interactions network devices and trimmed its workforce.The segment produced more than 20%of this revenue in the first 3 months of fiscal 2017 and one-fourth of the overall last quarter.The business's Lumada platform for the

web of things shows this change. Lumada Core, the element that uses expert system and information analysis to assist consumers better handle their businesses, boasts a profit margin topping 10%, omitting advancement expenses. This has proved more rewarding for Hitachi than the advancement of more typical systems.Hitachi generally depends on sales of high practical materials and medical devices for first-quarter profits. Its information and telecom business has the tendency to weigh in at the end of the . The information sector's greater contribution to first-quarter results this year shows that group operations are becoming more stable.Hitachi maintains its forecast for the ending in March 2019, anticipating consolidated net revenue to grow 10 %to 400 billion yen. The company has altered providers for some parts in response to U.S.-China trade friction, Nishiyama said, however he expects this to have little effect.