Hitachi Metals’ core supply areas – automobiles, electronics, and industrial infrastructure were severely affected by the pandemic causing a slump in its steel demand.
The steelmaker said in its annual earnings statement for FY 2019, ended March 31, 2020, that it plans to focus on maintaining sufficient cash flow through the year. It plans to lay out strict expense criteria on capital expenditure and projected its FY 2020 revenue at close to $928mn with operating incoming at around $371mn.
In FY 2019, Hitachi’s tool steel and rolled steel’s revenues dipped by 9.5pc to $2.3bn compared to FY 2018. Adjusted operating income of specialty steel products also dropped by $157mn to $51mn during the same period.
Revenue across its functional component and equipment segments including stainless steel, aluminum, and cast iron components also decreased by 18.5pc to $2.8bn in FY 2019 compared to the previous fiscal. Adjusted operating incoming also declined by $106mn in FY 2019 to $8.4mn compared to the last fiscal.
Hitachi’s total revenue that also includes wires and cables, and magnetic materials declined by 13.9pc to $8.1bn in FY 2019 compared to FY 2018. The company’s total adjusted operating income dropped by almost 72pc to $134mn during this period.
Hitachi Metals also announced Mitsuaki Nishiyama as its new chief executive officer and Hiroaki Nishioka as its new chief financial officer. Nishiyama and Nishioka will start serving in their new positions from June 1. They replace Koji Sato and Hiroshi Watanabe respectively.