Strong sales of mining trucks and public works equipment in North America pushed Hitachi Construction Machinery’s fiscal third-quarter 2023 net income to $479.4 billion, up 13% year over year.
In North America alone, Japan-based Hitachi Construction Machinery’s revenue for the third quarter, ended Dec. 31, 2023, was 252.4 billion yen ($1.7 billion), up 25% from 2022, according to the company’s earnings release. North American revenue accounted for 25% of Hitachi Construction’s overall business.
Previously, HCM had a 33-year agreement with Deere & Co. to operate three factories in the United States and Canada, producing hydraulic excavators and other construction equipment. In August 2021, the partnership was dissolved, and Deere acquired all three factories. Since then, HCM has been working to establish its own footprint in North America.
Overall, revenue in the Americas — including North and Latin America — increased 27% year over year, “driven largely by the growth of focused developing [our] own business,” Hitachi Construction Machinery Chief Financial Officer Keiichiro Shiojima noted in the Jan. 26 earnings report. This increase drove the company’s overseas revenue ratio up 1 percentage point YoY to 84% in Q3.
Demand for mini excavators, hydraulic excavators and wheel loaders decreased slightly in the quarter, compared to Q3 2022. Shiojima attributed this to a return to the norm after a period of high demand following the pandemic slowdown.
Hitachi LTD., parent company of Hitachi Construction Machinery, transferred its shares in HCM to HCJI Holdings G.K. in 2022 and now holds 25.4% of HCM. Hitachi told Equipment Finance News it now considers HCM an “equity method affiliate” company and has a minority stake in HCM following the deal.
Editor’s note: All figures have been converted to U.S. dollars.
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