Hitachi Zosen Corp
TSE:7004
Hitachi Zosen Corp
Hitachi Zosen Corp. engages in the design and construction of environmental systems, industrial plants, industrial machinery, process and infrastructure-related equipment, disaster prevention systems, and precision machinery. The company is headquartered in Osaka, Osaka-Fu and currently employs 11,089 full-time employees. The firm operates in four business segments. The Environment and Plant segment offers refuse incineration and recycle plants, water and sludge treatment plants, energy recovery systems, biomass using systems, denitration catalyst, electric power facilities, as well as sells power. The Machinery Equipment segment provides various processing equipment, such as marine engines, forging machines and boilers, nuclear power related equipment, plastic machineries, food machineries and others. The Infrastructure segment offers bridges, doors for water gates, chimneys, marine engineering equipment and disaster-prevention systems and others. The Others segment operates transportation, warehousing business and harbor cargo handling business.
Hitachi Zosen Corp. engages in the design and construction of environmental systems, industrial plants, industrial machinery, process and infrastructure-related equipment, disaster prevention systems, and precision machinery. The company is headquartered in Osaka, Osaka-Fu and currently employs 11,089 full-time employees. The firm operates in four business segments. The Environment and Plant segment offers refuse incineration and recycle plants, water and sludge treatment plants, energy recovery systems, biomass using systems, denitration catalyst, electric power facilities, as well as sells power. The Machinery Equipment segment provides various processing equipment, such as marine engines, forging machines and boilers, nuclear power related equipment, plastic machineries, food machineries and others. The Infrastructure segment offers bridges, doors for water gates, chimneys, marine engineering equipment and disaster-prevention systems and others. The Others segment operates transportation, warehousing business and harbor cargo handling business.
Order Intake Guidance Raised: Full-year order intake forecast was increased by JPY 60 billion to JPY 680 billion due to strong current progress and pipeline probability.
Sales Outlook Up: Net sales guidance was raised from JPY 570 billion to JPY 590 billion, reflecting project progress.
Net Income Guidance Lifted: Net income forecast was raised by JPY 2 billion to JPY 18 billion, helped by a JPY 2.9 billion insurance settlement.
Profit Pressure from Wind Project: A JPY 1.5 billion impairment was recognized due to abandoning an offshore wind power project, weighing on nonoperating income.
Environmental Segment Strength: Significant profit improvement in the Environmental segment, especially as prior cost overruns in biomass projects were resolved.
Engine Business Headwinds: Order intake and profit forecasts for the carbon neutral (engine) business were cut due to inappropriate conduct and longer inspections.
Compliance and Branding: Management is prioritizing restoring trust after compliance issues, and strengthening quality assurance. Branding activities and the new company name rollout continue as planned.
