Hitachi leans into IT services and power grid, fueling 150% profit surge

Long-term restructuring efforts bear fruit in April-June quarter, tapping AI demand

Rising global electricity consumption from the AI boom is a tailwind for Hitachi's power transmission business. (Hitachi)

KOTARO HOSOKAWA and KENTARO TSUTSUMI, Nikkei staff writers

August 1, 2024 02:36 JST

TOKYO -- Hitachi's group net profit for the April-June quarter rose 2.5-fold on the year to 175.3 billion yen ($1.1 billion), driven by strong AI-related demand in the IT services and power transmission and distribution businesses.

Net profit exceeded the QUICK Consensus market forecast of 103 billion yen by about 70%. The company announced financial results for the quarter on Wednesday.