Hitachi Construction Machinery expects its record FY2023 mining business revenues to flatten in FY24, as weaker demand for smaller machinery negates forecast robust sales of larger excavators and trucks.
The Japanese manufacturer hit a “new record high” level of mining machinery and aftermarket revenues in the 12 months to March 31 this year. Its Y291.8 billion (US$2.01 billion) total was 18% higher than last year’s mark, with truck, excavator and parts and service sales all higher year-on-year.
HCM is predicting FY24 mining sales could be 1% below the FY23 level at Y290.3 billion, with truck sales down but aftermarket activity up again.
“Demand for large mining machinery is expected to remain firm, with solid demand from major mines,” the company said.
Group revenue is forecast to decline 2.6% in FY24 to Y1370 billion due to continuing weakness in key construction equipment markets, but net income could be up 5% to Y98 billion.
Meanwhile, the mining-dominated former HCM solutions business, now called specialised parts and service, booked 11.4% higher revenues in FY23 “due to the strong performance of the mining market environment”.
The business consists of the former Bradken and H-E Parts International products and services.
