July 28, 2017 / 8:42 AM / 2 years ago

Hitachi profit beats estimates on lower costs, high-speed trains in Britain

FILE PHOTO: A logo of Hitachi Ltd. is pictured at CEATEC (Combined Exhibition of Advanced Technologies) JAPAN 2016 at the Makuhari Messe in Chiba, Japan, October 3, 2016. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Japanese industrial conglomerate Hitachi Ltd (6501.T) reported a stronger-than-expected quarterly profit on Friday, helped by lower costs as well as strong sales of high-speed trains in Britain and construction machinery in China.

The electronics-to-elevators maker said its April-June operating profit jumped 44 percent from a year earlier to 131.8 billion yen ($1.19 billion). The market expected an operating profit of around 96 billion yen, based on the average of seven analysts’ estimates compiled by Thomson Reuters I/B/E/S.

Hitachi has driven down costs and shifted away from unprofitable businesses in recent years. Its 6.3 percent operating margin, up from 4.3 percent a year earlier, was a record high.

Chief Financial Officer Mitsuaki Nishiyama told reporters that the company would maintain its sales and profit outlook for the full year, however, citing uncertainty over China’s economy in the second half of the year.

Reporting by Kentaro Hamada; Editing by Christopher Cushing

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