Hitachi Construction Machinery is forecasting a stronger FY24 after reporting record sales for the 12 months to the end of March this year.
The Japanese construction and mining equipment manufacturer expects revenue in the current year to grow further to Y1300 billion (US$9.74 billion) after rising 24.8% year-on-year to hit Y1280 billion (US$9.58 billion) in FY23.
The company is predicting a big year for its mining machinery, parts and service business after revenue surged from Y157.9 billion (US$1.18b) in FY22 to Y246.6 billion ($1.85 billion) in FY23.
“Demand for mining machinery remained firm throughout the global market, excluding Russia, due to continued strong appetite for customers’ investment against a backdrop of high resource prices and continued demand for overhaul and regular maintenance associated with high utilisation,” HCM said of the year just ended.
On the outlook, it said: “Demand for mining machinery is expected to decline for small mining excavators as the price of thermal coal stabilises and the willingness to invest in small and medium-sized mines is expected to decline.
“However, the market for ultra-large mining machinery, which is the core of our business, is expected to remain at the high level of the previous fiscal year.
“This is because overall global demand is expected to remain firm against a backdrop of continued demand for alternative energy resources from Russia in many parts of the world, and resource prices remaining at high levels due to increased infrastructure investment aimed at stimulating the economy after COVID-19.”
HCM expects its net income to rise this year to Y82 billion from Y70.2 billion in FY23.
It has rebranded its solution business, including Bradken and H-E Parts International, now known as specialised parts and service.
The business benefited from a “strong mining environment” in FY23, increasing revenue 38.3% year-on-year to Y131.2 billion (circa-US$100 million) in FY23.