HITACHI CONSTRUCTION MACHINERY CO., LTD. Consolidated Financial Results for the Third Quarter Ended December 31, 2022
(IFRS)
January 27, 2023
Listed company: Hitachi Construction Machinery Co., Ltd. (HCM)
Stock exchange: Tokyo (Prime Market) Code number: 6305 URL https://www.hitachicm.com/global/en/
Representative: Kotaro Hirano, Executive Officer, President & CEO
Scheduled date for submission of the Quarterly Securities Report: February 13, 2023
Scheduled date of commencement of payment of dividends: －
Supplementary materials to the financial statements have been prepared: Yes
Presentation will be held to explain the financial statements: Yes (for institutional investors, analysts and journalists)
(Rounded off to the nearest million)
1. Consolidated results for the third quarter ended December (April 1, 2022 to December 31, 2022)
- Consolidated results
(The percentages indicated show changes from the same period of the previous fiscal year)
Adjusted | Income before | Net income | Net income | ||||||||
Revenue | attributable to | ||||||||||
Operating income | income taxes | ||||||||||
owners of the parent | |||||||||||
Millions of | % | Millions | % | Millions | % | Millions | % | Millions of | % | ||
December 31, 2022 | yen | of yen | of yen | of yen | yen | ||||||
902,748 | 25.3 | 87,208 | 42.3 | 70,788 | 6.8 | 45,686 | (8.4) | 43,055 | (7.3) | ||
December 31, 2021 | 720,366 | 28.9 | 61,296 | 235.0 | 66,260 | 460.0 | 49,900 | 682.5 | 46,462 | － |
Note: "Adjusted operating income" is presented as revenues less cost of sales as well as selling, general and administrative expenses.
Net income attributable | Net income attributable to | |
to owners of the Parent | owners of the Parent per share | |
per share (basic) | (diluted) | |
December 31, 2022 | Yen | Yen |
202.47 | 202.47 | |
December 31, 2021 | 218.49 | 218.49 |
References: Share of profits (losses) of investments accounted for using the equity method
December 31, 2022: ¥(5,429) million December 31, 2021: ¥6,074 million
- Consolidated financial position
Total assets | Total equity | Total equity attributable to | Equity attributable to owners | |
owners of the parent | of the parent ratio | |||
December 31, 2022 | Millions of yen | Millions of yen | Millions of yen | % |
1,587,170 | 680,293 | 633,173 | 39.9 | |
March 31, 2022 | 1,409,560 | 667,931 | 611,608 | 43.4 |
2. Dividends status
Cash dividends per share | |||||||
First | Second | Third | Year end | Total | |||
Quarter | Quarter | Quarter | |||||
March 31, 2022 | Yen | Yen | Yen | Yen | Yen | ||
－ | 45.00 | － | 65.00 | 110.00 | |||
March 31, 2023 | － | 50.00 | － | ||||
March 31, 2023 | － | － | |||||
(Projection) | |||||||
Year-end dividends for the fiscal year ending March 2023 are to be determined.
Note: Changes involving the dividend states for the fiscal year ending March 2023: None
(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)
3. Consolidated earnings forecast for the full year ending March 2023(April 1, 2022 to March 31, 2023)
(The percentages indicated show changes from the same period of the previous fiscal year)
Net income | |||||||||||
Revenue | Adjusted | Income before | Net income attributable to | attributable | |||||||
to owners of | |||||||||||
Operating income | income taxes | owners of the parent | |||||||||
the parent | |||||||||||
per share | |||||||||||
March | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
31, 2023 | 1,230,000 | 20.0 | 120,000 | 28.3 | 101,000 | (8.9) | 62,000 | (18.2) | 291.56 | ||
Notes: Changes in consolidated earnings forecast: Yes
*Notes
- Important changes in the scope of the consolidation during period(changes involving specific subsidiaries accompanying changes in the scope of consolidation): None
- Changes in accounting policies; changes in accounting estimates
[1] | Changes in accounting policies required by IFRS | None |
[2] | Changes in accounting policies other than those in [1] | None |
[3] | Changes in accounting estimates | None |
- Number of outstanding shares (common shares)
[1] Number of outstanding shares (including treasury shares)
December | 2022 | 215,115,038 |
March | 2022 | 215,115,038 |
[2] Number of treasury shares | ||
December | 2022 | 2,465,422 |
March 2022 2,464,315
[3] Average number of common shares outstanding during the fiscal year (shares)
December | 2022 | 212,650,191 |
December | 2021 | 212,651,495 |
Indication of audit procedure implementation status
This earnings report is exempt from audit procedure.
Explanation on the appropriate use of results forecasts and other importantitems
Any forward-looking statements in the report, including results forecasts, are based on certain assumptions that were deemed rational as well as information currently available to the Company at this time. However, various factors could cause actual results to differ materially. Please refer to ''1. Management Performance and Financial Conditions,
- Outlook for the Fiscal Year Ending March 2023'' of the attachment for conditions serving as assumptions for results forecasts.
(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)
Index of the Attachment | ||
1. Management Performance and Financial Conditions | ||
(1) Management Results | 2 | |
(2) | Outlook for the Fiscal Year Ending March 2023 | 4 |
(3) | Analysis of Financial Condition | 5 |
2. Consolidated Financial Statements | ||
(1) | Consolidated Balance Sheets | 7 |
(2) | Consolidated Statements of Income and Comprehensive Income | |
Consolidated Statements of Income | 8 | |
Consolidated Statements of Comprehensive Income | 9 | |
(3) | Consolidated Statements of Changes in Equity | 10 |
(4) | Consolidated Statements of Cash Flows | 12 |
(5) | Notes on Consolidated Financial Statements | |
(Notes on the Preconditions for a Going Concern) | 13 | |
(Segment Information) | 13 | |
(Notes on Investments accounted for using the equity method) | 16 |
(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)
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1. Management Performance and Financial Conditions
(1) Management Results
In the three-yearmedium-term management plan entitled " Realizing Tomorrow's Opportunities 2022 ", which ends in FY2022, the Consolidated Group is currently working to achieve sustainable growth and improve enterprise value through four management strategies: ① Strengthen value chain business; ②Provide enhanced solutions at every contact with customers; ③Form highly flexible corporate structure; and a new one ④Realize strategies throughout North, Central and South America.
During the 3Q of fiscal year under review (April 1, 2022 to December 31, 2022), demand for hydraulic excavators continued to decline year on year, in line with our expectations. In terms of region, demand in China and Russia/CIS significantly declined year on year.
On the other hand, demand for mining machinery remained strong in the market as a whole due to continued strong appetite for customers' investment against a backdrop of high resource prices and continued demand for overhaul and regular maintenance associated with high-capacity utilization.
In this environment, revenue was ¥902,748 million (an increase of 25.3% year on year), reflecting a significant year-on-year increase in the value chain business that we have focused on, in addition to new machinery sales for construction and mining, as well as the impact of yen depreciation and other factors.
As for consolidated income items, adjusted operating income increased significantly to
¥87,208 million (an increase of 42.3% year on year) mainly due to an increase in revenue and the impact of yen depreciation and other factors, despite the absence of adjustment amount due to the determination of sales prices for the Americas, which is a one-time profit recorded in the 2Q of the previous fiscal year, and an increase in costs throughout the 3Q of fiscal year under review mainly due to steel prices. On the other hand, net income attributable to owners of the parent was ¥ 43,055 million (a decrease of 7.3% year on year), affected by non-operating foreign exchange losses, impairment losses on investments accounted for using the equity method and other factors.
Business results by segment are described below.
① Construction machinery business
During the 3Q of fiscal year under review, revenue was ¥811,644 million (an increase of 23.8% year on year) and adjusted operating income was ¥79,567 million (an increase of 40.9% year on year).
The business impact of procurement and logistics delays that occurred in the 1Q of the current fiscal year improved significantly from the 2Q. The Americas business, which began full-scale independent development in the current fiscal year, also performed better than expected. Supported by strong orders in various regions, both new machinery sales for construction and mining and the value chain business, centered on parts and services, performed well significantly growing year on year.
②Solution business
This segment consists primarily of Bracken Pty Limited and its subsidiaries, which are engaged in the parts and services business in the after-sales of mining facilities and machinery, and H-E Parts International LLC and its subsidiaries, which provide service solutions.
During the 3Q of fiscal year under review, revenue was ¥95,625 million (an increase of 42.2% year on year) due to the strong performance of the mining market environment, as well as the impact of exchange rates and other factors. Adjusted operating income was ¥7,641 million (an increase of 58.0% year on year) mainly due to an increase in revenue and the impact of foreign exchange rates, despite the impact of an increase in costs mainly in
(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)
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steel prices.
The above revenues of segments ① and ② are figures before intersegment adjustments. The following table summarizes consolidated net revenue by geographic area:
(Millions of yen) | |||||||
FY2022 | FY2021 | ||||||
(April 1,2022- December 31, | (April 1,2021- December 31, | Increase (Decrease) | |||||
2022) | 2021) | ||||||
Revenue | Proportion | Revenue | Proportion | (A)-(B) | (A)/(B)-1 | ||
(A) | (%) | (B) | (%) | (%) | |||
North America | 197,298 | 21.9 | 136,200 | 18.9 | 61,098 | 44.9 | |
Central and | 24,305 | 2.7 | 15,682 | 2.2 | 8,623 | 55.0 | |
South America | |||||||
The Americas | 221,603 | 24.5 | 151,882 | 21.1 | 69,721 | 45.9 | |
Europe | 109,091 | 12.1 | 86,814 | 12.1 | 22,277 | 25.7 | |
Russia-CIS | 29,084 | 3.2 | 25,841 | 3.6 | 3,243 | 12.5 | |
Africa | 36,858 | 4.1 | 30,260 | 4.2 | 6,598 | 21.8 | |
Middle East | 18,502 | 2.0 | 12,728 | 1.8 | 5,774 | 45.4 | |
Russia-CIS, Africa, | 84,444 | 9.4 | 68,829 | 9.6 | 15,615 | 22.7 | |
and the Middle East | |||||||
Asia | 81,991 | 9.1 | 58,265 | 8.1 | 23,726 | 40.7 | |
India | 50,585 | 5.6 | 38,373 | 5.3 | 12,212 | 31.8 | |
Oceania | 170,020 | 18.8 | 122,451 | 17.0 | 47,569 | 38.8 | |
Asia and Oceania | 302,596 | 33.5 | 219,089 | 30.4 | 83,507 | 38.1 | |
China | 29,050 | 3.2 | 38,992 | 5.4 | (9,942) | (25.5) | |
Sub-total | 746,784 | 82.7 | 565,606 | 78.5 | 181,178 | 32.0 | |
Japan | 155,964 | 17.3 | 154,760 | 21.5 | 1,204 | 0.8 | |
Total | 902,748 | 100.0 | 720,366 | 100.0 | 182,382 | 25.3 |
(Rounded off to the nearest million)
(English translation of "KESSAN TANSHIN" originally issued in the Japanese language.)
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HCM - Hitachi Construction Machinery Co. Ltd. published this content on 27 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2023 06:24:07 UTC.
