Hitachi Ltd. Company Profile
The Mobility segment covers building systems such as elevators, escalators, and railways. The Life segment focuses on medical equipment, life, and ecosystems, such as refrigerators, washing machines, commercial air conditioners, and automotive systems including powertrain, chassis, and advanced driving support systems.>
- Key Management
Mr. Keiji Kojima (CEO & President)
Hitachi Ltd. is engaged in the manufacturing and sale of electrical products. It has the following segments: Energy, IT, Hitachi High Technologies, Industry, Mobility, Life, Hitachi Metals, Hitachi Construction Machinery, Hitachi Chemical, etc. The IT segment deals with, consulting system integration and control systems, software, cloud services, IT products, servers, and storage, as well as ATMs.
The Energy segment covers power generation systems (nuclear, renewable, and thermal power) as well as the power grid system. The Industry segment includes industrial and distribution networks as well as water and environment systems. The Mobility segment covers building systems such as elevators, escalators, and railways.
The Life segment focuses on medical equipment, life, and ecosystems, such as refrigerators, washing machines, commercial air conditioners, and automotive systems including powertrain, chassis, and advanced driving support systems.
Hitachi High Technologies covers medical/life science products, analysis equipment, semiconductor manufacturing equipment, manufacturing/inspection gear, as well as advanced industrial materials. Hitachi Construction Machinery includes a hydraulic excavator and wheel loader, a mining machine, maintenance/service as well as civil engineering solutions.
The Hitachi Metals segment handles special steel products, base materials, magnetic materials/power electronics, and wire materials. The Hitachi Chemical segment includes functional materials (electronics, wiring board materials, and electronic components), advanced component systems (mobility materials power storage devices, life sciences-related products), and advanced components.
Other segments include optical disc drives, real estate management, buy-and-sell, and optical disc drives. Namihei Odaira founded the company in Tokyo, Japan in 1910.
Revenue (US$ Mn):
- Hitachi Ltd’s annual revenue for 2021 was US$ 79,205 Mn, a -5.99% decrease from 2020
- The annual revenue generated by Hitachi Ltd in 2020 was US$ 84,252 Mn
- At a 4.77% increase, Hitachi Ltd’s annual revenue of US$ 86,581 Mn was indexed in 2019
- Hitachi Ltd generated total revenue of US$ 82,638 Mn in 2018
Operating Income (US$ Mn):
- US$ 3,668 Mn was Hitachi Ltd’s operating income in 2021, a -42.33% decrease from 2020 figures
- Hitachi Ltd indexed a -7.75% decrease in operating incomes from 2019, amounting to US$ 6,361 Mn in 2020
- Hitachi Ltd generated an operating income of US$ 6,895 Mn in 2019
- An operating income of US$ 6,304 Mn was indexed by Hitachi Ltd in 2018
Net Income (US$ Mn):
- US$ 3,716 Mn was the net income generated by Hitachi Ltd in 2021
- Hitachi Ltd’s net income for 2020 was US$ 842 Mn, a -58.58% decrease from 2019
- From 2018’s net incomes, Hitachi Ltd registered a -36.52% decrease in 2019, amounting to US$ 2,032 Mn
- A net income of US$ 3,202 Mn was generated in 2018 by Hitachi Ltd
Operating Margin :
- Hitachi Ltd’s operating margin for 2021 was 6%, a -24% decrease from 2020
- The operating margin generated by Hitachi Ltd in 2020 was 8%
- At a 5.26% increase, Hitachi Ltd’s operating margin of 8% was indexed in 2019
- Hitachi Ltd generated an operating margin of 8% in 2018
Gross Margin :
- 25% was Hitachi Ltd’s gross margin in 2021, a -7.04% decrease from 2020 figures
- Hitachi Ltd indexed a 1.89% increase in gross margins from 2019, amounting to 27% in 2020
- Hitachi Ltd generated a gross margin of 27% in 2019
- A gross margin of 27% was indexed by Hitachi Ltd in 2018
Focused on Environment-Friendly Products
Hitachi is committed to achieving environmental efficiency with its products. The company established a Design for Environment (DfE), which defines environmentally responsible criteria for the design and development of products and services. DfE products are known as eco products. The ratio of Eco product sales to total products sold reached 95% during FY2016.
In addition, the company developed eco-products designated as “eco-product select” that met even higher requirements, such as having a global warming prevention factor and a minimum 50% reduction in carbon emission. In FY2016 the number of Eco-Products Select-qualified products increased to 409.
Hitachi room-air conditioner models RAS EK56F2, EK40F2, EAS EK40F2, EAS EK36F, and D50F2 are some of the most important eco-products. Considering the fact that many developed countries have policies to promote the usage of environmental-friendly products, Hitachi’s focus on developing energy-saving eco products further strengthens its position in this segment.
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