Hitachi Construction Machinery revenue hits record $2.1B in Q1

Hitachi Construction Machinery posted record fiscal first-quarter revenue as growth in parts and services, price increases and favorable currency movements offset higher logistics costs.

Revenue increased 7.5% year over year to 329.1 billion yen ($2.1 billion) in the three months ended June 30, according to the company’s July 30 earnings release.

Demand remained firm in North America, supported by infrastructure investment, despite uncertainty surrounding U.S. tariffs, according to the release. Hydraulic excavator demand also remained solid in Europe, while mining demand grew due to hard-rock mineral activity in Latin America and other regions.

By the numbers

North American revenue declined as lower original equipment manufacturer sales offset growth in Hitachi’s company-owned Americas business, according to its earnings presentation. Earnings highlights include:

• Construction machinery revenue increased 6.8% YoY to $1.8 billion, while adjusted operating income rose 65.2% to $203.6 million;
• Value-chain revenue, which includes parts and services, rental, used equipment and related businesses, rose 17.2% to $991.8 million and represented 48% of total revenue, up from 44% a year earlier;
• North American revenue fell 7.4% to $413.2 million, while Central and South American revenue more than doubled to $95.5 million; and

Hitachi raised its full-year revenue forecast 2.8% from its April outlook to $9.5 billion, representing projected growth of 4.6% YoY, according to the presentation. The company also expects full-year North American revenue to increase 10.9% to $2.2 billion.

Editor’s note: All amounts have been converted to U.S. dollars.

Check out our exclusive industry data here.