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Hitachi Construction Machinery Co., Ltd. <6305> rebounds after morning weakness on new mid-term plan targeting 120 billion yen net profit for March 2029
Hitachi Construction Machinery Co., Ltd. <6305> rebounded after opening lower. After the close of trading on the 24th last week, the company announced its mid-term management plan (covering fiscal years ending March 2027 onward) with March 2029 as the final year. The company aims to achieve net profit of 120 billion yen for the fiscal year ending March 2029 (compared to 80 billion yen in the current fiscal year outlook) by expanding product lineups in North America to increase sales share and building a growth foundation in Latin America. The company also announced its consolidated financial results for the fiscal year ending March 2026, with net profit coming in at 73.19 billion yen (down 10.1% year-on-year), below the previous forecast of 78 billion yen. While selling emerged at the open in reaction to the earnings miss, buying in response to the mid-term plan targets gained the upper hand after the initial selling subsided.
The company also disclosed its full-year earnings forecast for the fiscal year ending March 2027. Revenue is projected at 1.43 trillion yen (up 1.7% year-on-year), with net profit forecast at 80 billion yen (up 9.3% year-on-year). The forecast incorporates cost increases from U.S. tariffs and expenses associated with brand transitions, while anticipating solid demand in North America and Europe. The annual dividend forecast was set at 190 yen (90 yen interim, 100 yen year-end), compared to 175 yen in the previous fiscal year.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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